IDH has been named Technical Assistance Manager of the AGRI3 Fund, as part of a partnership between UN Environment and Rabobank to catalyze private financial resources for deforestation-free, sustainable agriculture and land use. The Fund’s advisor will be Althelia Funds.
The Fund will develop business models and mobilize the capital of commercial banks and other financial institutions by de-risking and catalyzing investment propositions to meet three objectives:
1) Contribute to sustainable and efficient agricultural production
2) Prevent deforestation and stimulate reforestation
3) Improve rural livelihoods
IDH’s Investment Manager in Brazil Marcela Paranhos said:
“In the long term, this Fund aims to establish that business models based on the production of sustainable commodities become the norm, not the exception.”
To achieve these objectives, the Fund will explore combined solutions of equity, debt, risk reduction and grant instruments (in the form of technical assistance) to catalyze USD 1 billion in finance over the next three years. These solution packages will be offered to farmers through structured programs involving commercial banks, agribusiness companies and local governments.
The Fund will draw on the joint efforts and expertise of UN Environment, Rabobank and IDH, together with the Dutch Development Bank FMO.
As Technical Assistance Manager, IDH will structure and implement the best technological packages to meet the Fund’s goals. It will catalyze more and better investments, thus playing a crucial role in risk reduction and pipeline development for investments that promote sustainable agriculture and forest protection.
AGRI3 FUND advisor will be AltheliaFunds by Mirova – a leading asset management company for responsible investment. IDH’s existing working relationship with Mirova, and its experience in supporting sustainable agriculture and forest protection investments in countries such as Brazil and Indonesia, also ensures that synergies are created and that technical assistance resources are efficiently deployed and managed.
AGRI3 FUND was launched at the World Business Council for Sustainable Development (WBCSD) event in Singapore on 24 October 2018.