Dealflow | December 9, 2020

Spanish development bank launches $145 million fund for emerging market farmers

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, December 9 — Compañia Española de Financiación del Desarrollo, or COFIDES, has launched a $145 million fund that will invest in microfinance institutions, banks and agricultural cooperatives in Asia, Africa, Latin America and the Caribbean to on-lend to smallholder farmers.

The Huruma Fund, which will be managed by Gawa Capital, aims to reach 45,000 farmers.

COFIDES launched the fund with just $1 million of its own capital. It raised $20 million from Spain’s international development cooperation agency AECID and $89 million from CaixaBank’s network of private investors. The E.U. kicked in $10 million of first-loss capital.

Another $10 million will be used for technical assistance.