Project detail - ECO-BUSINESS FUND II SUB-FUND

ECO-BUSINESS FUND II SUB-FUND

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Who is our client

Eco.business II Sub-Fund (“EBF II”) is an open ended debt fund that aims to promote ecologically sustainable businesses, with a special focus on fighting deforestation in Sub-Saharan Africa, through the provision of dedicated financing and technical assistance. The eco.business II Sub-Fund was initiated by Germany’s KfW Development Bank with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ). The Fund is managed by Finance-In-Motion.

Funding objective

FMO will invest in senior shares. The funds will be on-lent to local financial institutions that target sustainable businesses/projects (i.e. certified or identified as green). In addition, the Fund looks to set up strategic partnerships with commodity buyers to finance smallholders and also to finance high impact projects directly. Priority sectors will be sustainable agriculture, fishery, forestry and tourism.

Why we fund this project

FMO’s investment in EBF II will contribute to biodiversity conservation and sustainable use of natural resources, which is directly in line with SDG 13. Being one of the first investors, FMO’s stamp of approval is expected to attract additional investors to the Fund.

Environmental and social rationale

Based on the expected portfolio composition, the investment has been categorised as Category B, in accordance with FMO’s Sustainability Policy.

Region
Africa
Country
Africa
Sector
Financial Institutions
Signing date
6/29/2020
Total FMO financing
USD 10.00 MLN
Fund
FMO
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)
B