ImpactAlpha, July 28 – Chennai-based Samunnati is a rare source of financing for India’s 130 million smallholder farmers, coupling capital with agricultural support services. The financial services firm has previously raised debt financing the way most impact enterprises do: from development finance institutions and impact funds.
Its new approach: a certified green bond with Symbiotics listed on the Luxembourg stock exchange. Proceeds from the $4.6 million bond will be used to encourage India’s collective farmer producer organizations to adopt climate-resilient farming practices.
“India being a tropical country remains at highest risk of climate change, and the agri-sector is likely to face a big set of challenges, like volatility and disruptions in production, farm productivity, farmer income levels and agri value-chain operations, because of climate change,” Samunnati’s Anil Kumar SG told ImpactAlpha.
Samunnati is one of the first non-banks in India to issue a green bond for agriculture and agroforestry.
In six years, Samunnati has provided more than 60 billion rupees ($807 million) to 1,000 farmer producer organizations in 21 states in India. In April, Samunnati acquired agricultural support services firm Kamatan to expand its reach to an additional 50 FPOs in northern and central India.
It has raised more than $30 million in debt financing in the past year, mostly from the International Finance Corp.
Sammunati raised $55 million in equity in 2019.