eco.business Fund extends a USD 30 million loan to Banco Continental Paraguay
Luxembourg and Asunción, 7 December 2023 - eco.business Fund Latin American and Caribbean (LAC) has extended a USD 30 million loan to Banco Continental Paraguay in alignment with the fund's mission to have a positive impact on sustainability and biodiversity in agribusinesses.
The loan will support the Bank in broadening its green portfolio by supporting agricultural producers that have integrated sustainability practices into their operations. The funding arrangement is also expected to raise broader awareness of the benefits of financing sustainable practices and expand the Fund’s footprint in Paraguay.
eco.business Fund’s finance will be targeted at the agribusiness sector, which is a meaningful contributor to economic growth in the country and a significant employer, providing some 20% of the jobs. Paraguay is a country that is rich in natural resources, with a growing economy bolstered by government policies giving its agricultural sectors a competitive edge in the region.
Banco Continental Paraguay is well-placed to deliver on the Fund’s mission. It’s a top-tier bank operating in the commercial sector and the first to issue a sustainable bond to finance green and social projects. The bank was also a founding member of the Sustainable Finance Round Table (MFS), which is a voluntary self-regulation banking association.
This is the first loan eco.business Fund is providing to the bank opening a new relationship with a relevant player in the target sectors of the Fund that is expected to contribute to Sustainable Development Goals (SDGs) 2, 8, 15, and 17.
Additional Technical Assistance (TA) projects are envisaged to further support Continental’s commitment to implementing sustainability measures in its business and to increase its green portfolio. Programs would include supporting Continental to implement climate risk management frameworks and processes that are aligned with the TCFD recommendations as well as end users improving their environmental footprint by building capacity on best agricultural practices .
The Sustainability Academy is also on the cards, with the aim of introducing environmental and social best practices and extending the reach of sustainable practices to the bank’s stakeholders and clients. This is a knowledge platform that is free of access from the Fund’s webpage and focuses on different practices that have the potential to generate positive environmental impact.
Chairperson of eco.business Fund Michael Evers said: “Continental is a great partner for the fund. It has already differentiated itself as a leader of sustainability funding in the Paraguay market by taking proactive measures in its business. The proposed credit line aligns with the fund's mission of conserving biodiversity, promoting sustainable use of natural resources, and addressing climate change. We are confident our support will have a strong impact in the agricultural sector, delivering on our intentions.”
Hector Gomez Ang, Regional Head – Latin America and the Caribbean at Finance in Motion, eco.business Fund’s advisor added: “Through this strategic and impactful financing to Continental, the EBF will support a bank that stands out in Paraguay for delivering impact finance throughout the country and that has been differentiating itself in the market as a sustainability leader. Greater access to affordable financing will further promote sustainable practices within the agriculture sector and its producers.”
About the eco.business Fund
The eco.business Fund aims to promote business and consumption practices that contribute to biodiversity conservation, to the sustainable use of natural resources, and to mitigate climate change and adapt to its impacts in Latin America, the Caribbean, and sub-Saharan Africa. By providing financing for business practices that conserve nature and foster biodiversity, the fund seeks investments with both environmental and financial returns. The eco.business Fund provides financing through three avenues: local financial institutions that are committed to the fund’s mission and which have the capacity to reach its target group; directly to its target group (i.e. companies and producers); and in the case of sub-Saharan Africa, to real sector intermediaries. The fund supports sustainable operations in the sectors of agriculture, fishery (including aquaculture), forestry and tourism. Target beneficiaries are those that hold an eligible sustainability certification or those taking out a loan to make eligible sustainable investments in their operations.
Operating together with each of the two sub-funds, are two development facilities that provide high-impact technical assistance to investment partners and final borrowers.
An impact investment fund advised by Finance in Motion, the eco.business Fund was initiated by Germany’s KfW Development Bank and Conservation International with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ).
The sub-fund for sub-Saharan Africa was formally launched in 2020 with initial funding from BMZ.
The sub-fund for Latin America and the Caribbean has received funding from the European Commission as well as from numerous other prestigious development finance institutions and institutional investors.
For more information please visit www.ecobusiness.fund and follow us on Twitter @ecobusinessfund
About Finance in Motion
Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.
For more information, please visit us at: www.finance-in-motion.com
You can also follow us on Twitter @financeinmotion and on LinkedIn
Media contact eco.business Fund
Anne Johnson
Email: press@ecobusiness.fund
Phone: +49 69 271 035 742