FMO proposes investment in agriculture debt fund
The Dutch entrepreneurial development bank FMO is proposing a $17.5 million investment in the Climate-Smart Agriculture & Food Fund, a $200 million close-ended debt fund established by responsAbility in collaboration with CGIAR and anchor investor KfW.
The fund’s strategy is to provide long-term financing along with technical assistance to agriculture SMEs under four investment themes:
– sustainable intensification of production;
– value adding and efficient processing and logistics;
– sustainable and inclusive retail and food brands; and
– climate technology and solutions providers.
The financing will target transactions in the agriculture space focused on reducing climate change risk and greenhouse gas emissions as well as on promoting sustainable increase in yields. FMO will participate in the senior tranche in the second closing.
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