Pre-investment Technical Assistance by LDN TAF

Country:

Mexico

Sector:

Pine chemicals, Forestry industries

Business model

Ejido Verde works with community leaders and smallholder farmers to identify suitable land and design agroforestry systems, including pine tree plots, tailored to the conditions of each parcel. All farm inputs, including high quality pine seedlings and tools, are provided by Ejido Verde as a zero-interest loan to the entire community, which collectively holds legally-recognized land titles and are then, as a community, responsible for re-payment where each participating landholder repays their share with pine resin harvested from trees planted. Ejido Verde formalizes relationships with the ejidos (area of communcal land used for agriculture in which community members have usufruct rights) via loan contracts and purchase agreements for crude pine resin.

Investment need

Ejido Verde currently seeks private investment to be used to finance new planting activities. This financing round includes additional equity from an existing shareholder and about $15 M USD (mezzanine) debt, of which $5M USD have already been committed.

Technical assistance

  • Forest inventory of the existing hectares under management and collection of site condition data to demonstrate the suitability of expansion areas in order to determine accurate growth/yield curves and inform forest management interventions to optimize costs and tree growth overtime.
  • Preparation of a Project Design Document required to generate Certified Emission Reductions (carbon credits) as per the Climate Action Reserve Mexico standard (CAR-Mexico) and participatory project design with stakeholders consistent with FPIC guidelines.

© Ejido Verde

Technical assistance support from the LDN TAF does not constitute a commitment from the LDN Fund, or Mirova, to finance directly or indirectly the project described above. Any such commitment shall be subject to inter alia, a detailed technical, financial and legal due diligence of the company and the project, as well as all required LDN Fund investment committee approvals and satisfactory documentation.