Eco-Business I Sub-Fund
Status: Investment in contracting phaseWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Eco-Business Fund is a Luxembourg-based open-ended investment fund managed by Finance in Motion. It comprises two sub-funds, each with a distinct regional focus. Eco-Business Fund I concentrates on investments in the Latin America and the Caribbean region, while Eco-Business Fund II targets Sub-Saharan Africa.
What is our funding objective?
EBF I’s core focus is to promote business and consumption practices that contribute to biodiversity conservation, the sustainable use of resources, and to mitigate climate change and adapt to its impacts. This is predominantly done by offering debt products to local FIs which in turn on-lend to businesses that are either certified by sustainability standards or seek funding for specific green products. To a limited extent, the fund further provides debt to corporates with a strong impact mandate. The main sectors include agriculture, fishery, forestry and tourism.
Why do we want to fund this investment?
The Fund allows FMO to expand its green portfolio by investing in biodiversity and the sustainable use of natural resources. This is in line with FMO’s 2030 Strategy which aims to invest USD 10bln in SDG 13 by 2030.
What is the Environmental and Social categorization rationale?
EBF I has been classified as an E&S A risk in accordance with FMO’s Sustainability Policy. The categorization is not solely based on the Fund’s use-of-proceeds but takes a holistic view on each of the Fund’s portfolio companies. The portfolio companies include large financial institutions which have exposure to corporate and project finance and high-risk sectors, as well as medium to medium-high risk projects in the agricultural sector. The portfolio companies’ E&S risks can be magnified by the regional context in the Latin America and the Caribbean region including risk of lax enforcement of environmental and social legislation, high deforestation and biodiversity loss, pollution by agrochemicals, poor labour conditions, and conflict with indigenous communities. EBF I addresses these risks through strict investment and eligibility criteria and the implementation of an Environmental and Social Management System (ESMS). EBF’s ESMS is operated by a team of E&S specialists and considers the application of the EDFI Exclusion List, IFC Performance Standards, and local E&S laws and regulations.
More investments
| Date | Total FMO financing |
|---|---|
| 11/17/2016 | USD 10.10 MLN |
| 11/17/2016 | USD 7.58 MLN |
| 11/17/2016 | USD 7.58 MLN |
| 9/30/2023 | USD 7.50 MLN |
| 9/30/2023 | USD 10.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Latin America & The Caribbean
- Sector
- Financial Institutions
- Publication date
- 8/1/2023
- Deadline for feedback
- 9/30/2023
- Total FMO financing
- USD 7.50 MLN
- Funding
- FMO NV
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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
- Translation
- https://www.fmo.nl/eco-business-fund-s.a.%2c-sicav-sif