The regulated multipurpose finance company Mega becomes the fund's second Mexican partner by receiving a senior loan of USD 30 million
The funding will help finance modern tech equipment for protected agriculture production
Luxembourg and Mexico City, 02 November 2021 – The eco.business Fund has provided a loan of USD 30 million to Operador de Servicios Mega. The investment will enable Mega to finance the acquisition of high and medium technology equipment for sustainable protected agriculture production, mainly for berry crops. The expected impact of the financing is expected to increase productivity per hectare, reduce water and fertilizer use, create jobs, among other benefits.
Operadora de Servicios Mega S.A. de C.V., SOFOM ER (Mega), based in Guadalajara, Jalisco, was founded in 2003 by Guillermo Romo Romero and is one of the largest independent non-banking financial institutions (NBFIs) in Mexico. The entity provides leasing and credit products to small and medium-sized enterprises (SMEs), a segment that has characteristically been underserved by traditional banking institutions in a variety of industries; including agriculture, transport, tourism, manufacturing, information technology, and healthcare. Since 2017, with the opening of the German Development Bank DEG in its capital, Mega has been implementing an Environmental and Social Management System in its operations and, through the Mega Da+ initiative, provides financing to SMEs led by women.
“We are honored to partner with Mega, as we firmly believe such collaboration can help grow sustainable business practices in the country,” said Dr Jens Mackensen, Chairperson of the Board of Directors of the eco.business Fund. “We strongly believe that by financing sustainable measures, it will play a critical role in boosting Mexico´s agriculture climate resiliency.”
Mega's spokesperson added: "We are very pleased to have the opportunity to collaborate with the eco.business Fund. From the first contact we had with them, we knew that our values were aligned, as well as the vision of a sustainable business model and care for the environment. We are very excited to see the results of this synergy and hope that this relationship will be fruitful and, above all, that it will be a long-term relationship to achieve the greatest impact."
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 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.
The sub-fund for sub-Saharan Africa was launched in 2020 with initial funding from BMZ.
Mega is a leading independent leasing company in the state of Jalisco, founded in 2003 by Guillermo Romo Romero under the highest standards of Corporate Governance and the only one regulated within the top 5. Mega's main activity is to provide financing through lease-purchase and credit facilities, with operations in Mexico and the United States.
The Company serves individuals or companies that have little or difficult access to traditional financial institutions or that are not adequately served, and that need to acquire productive assets that generate economic resources.
Mega is committed to promoting economic development in a sustainable manner by incorporating standards of environmental and social responsibility linked to equity, ecological value, healthy development and economic growth of the Company's customers, to ensure that their investments are not undermined by adverse impacts, so that the well-being of the current population can be improved without compromising the quality of life of future generations.