ImpactAlpha, December 11 – Eco.business Fund invests in sustainable agriculture, fishery, forestry and tourism initiatives in Latin America and the Caribbean. It has taken $60 million in debt financing from IDB Invest, part of the Inter-American Development Bank.
Eco.business Fund was launched in 2014 by German development bank KfW Conservation International and Finance in Motion to leverage public and private capital to support business practices that promote conservation and sustainable use of natural resources. The Frankfurt-based fund invests in Latin America and the Caribbean, primarily via financial institutions that on-lend to businesses in its target sectors.
The fund has amassed a portfolio of $230 million with 13 partner institutions. In September, Eco.business Fund provided $33 million in debt to Ficohsa banking groups’ Honduras and Nicaragua operations to support coffee, sugar cane, aquaculture and food processing businesses agribusinesses adopting sustainable practices, for example. It extended a $25 million loan to GNB Sudameris Bank in Colombia in June to provide credit to local businesses that comply with international environmental sustainability standards, like Rainforest Alliance and Fairtrade.