Project detail - THE MELOY FUND - I, L.P.

THE MELOY FUND - I, L.P.

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Who is our client

The Meloy Fund I (“Fund”) is an impact investment fund that invests on average USD 1mln in agribusinesses that are well-embedded in their respective value chains and work directly with small-scale fishermen in Indonesia and the Philippines. International conservation organisation Rare assists the Fund and its investees with technical expertise, funding, and grant assistance to ensure that fisheries operate in sustainable ways and that investees contribute to rebuilding fish stocks (where relevant). As such, the creation of economic opportunities for small-scale fisheries is linked with the conservation of critical marine habitat.

Funding objective

FMO will invest USD 5mln in the Fund. The Fund will employ its capital to support small-scale fisheries in Indonesia and the Philippines. The two countries of operations have been selected because these are major fishing nations (e.g. Indonesia is the 2nd largest seafood producer globally), with 4.3mln small-scale fishermen, and where Rare has developed a strong foothold.

Why we fund this project

The Fund targets a new niche that has a high impact potential. It focusses on agribusinesses that work directly with small-scale fisheries, and is forecasted to advance the livelihoods of over 100,000 small-scale fishermen and the rural communities they live in. Furthermore, through its investments, the Fund aims to bring over 1.2mln ha of coastal waters under improved management.

Environmental and social rationale

E&S categorization is A (high) as the Fund will operate in E&S high-risk countries (e.g. Indonesia and Philippines) and sectors (e.g. aquaculture). IFC Performance Standards 1-4 and 6-8 are triggered. PS 5 (Land Acquisition and Involuntary Resettlement) does not apply because the client will not acquire land for expansion. The concept of investing into sustainable seafood projects with coastal fisheries communities and ecosystem conservation is comparatively new for financial institutions. The risk is mitigated by the Fund’s ESG policy and procedures. All Fund investments are designed to generate measurable social and environmental outcomes, while delivering reasonable financial returns. Most of the projects are sourced and executed in close cooperation with the Rare environmental and social experts. ESAP addresses solidification of ESMS implementation, E&S project screening, staff training on IFC PS and mid-term reviews. The Fund aims to make positive contribution to the environment and social well-being of the underserved coastal fisheries’ communities in Indonesia and Philippines, which is “raison d’etre” for the fund.

Region
Asia
Country
Asia
Sector
Agribusiness, Food & Water
Signing date
8/30/2018
Total FMO financing
USD 5.00 MLN
Fund
MASSIF
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)
A