ALTHELIA SUSTAINABLE OCEAN FUND SIF
Who is our client
The Sustainable Ocean Fund (“ASOF”) is an investment initiative of Ecosphere Capital Ltd (UK) or “ECL”. ECL is a JV between Althelia Climate Fund GP S.a.r.L. (“ACF GP”) and Mirova, the impact investment arm of Natixis Global Asset Management.
This proposed 7.5 mln loan will be invested as equity in ASOF, which will originate, structure and provide finance to (i) sustainable fisheries / aquaculture projects, (ii) seafood supply chains and (iii) coastal development-/conservation projects.
Why we fund this project
Financing sustainable wild fisheries, aquaculture and marine conservation is still a very new activity and fund sources are scarce. Hence, FMO’s participation is highly complementary and critical to a successful fund raising.
Environmental and social rationale
E&S categorization is A. IFC Performance Standards 1-4 and 6 are triggered. IFC PS 5, 7 and 8 are not expected to be triggered as the ASOF project selection process foresees elimination of any land resettlement and focuses on strengthening ecosystem-based services that benefit local communities and contribute to protection of local cultural sites. All projects are small-scale, have no significant E&S risks, but high potential for benefits for the marine ecosystems and communities dependent on them. The reason for the A risk categorisation is that The Fund will operate in E&S high-risk countries (e.g. Colombia, Honduras and Guatemala) and sectors (e.g. aquaculture). Besides, the concept of investing into sustainable seafood projects and ecosystem conservation, restoration and livelihoods is comparatively new for financial institutions. The risk is mitigated by the Fund’s robust ESG policy, procedures and capacity, ensuring adherence of investee companies to the IFC PSs and with project selection and management focused on positive E&S impacts. ASOF has a Board of experts from NGOs and relevant entities to manage project with quarterly E&S reporting.
|Date||Total FMO financing|
|6/29/2018||USD 2.50 MLN|
- Agribusiness, Food & Water
- Signing date
- Total FMO financing
- USD 5.00 MLN
- Building Prospects
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)