eco.business Fund and FMO Join Forces to Protect and Foster Latin American Biodiversity
The eco.business Fund and the Dutch development bank FMO today announced the bank’s commitment of USD 25 million to the impact investing fund, which conserves and promotes biodiversity in Latin America. FMO’s financing represents one of the largest investments in the fund and underlines the bank’s increasing focus on biodiversity. Following the agreement, the fund commitments to date total nearly USD 80 million.
The fund offers an opportunity to support contributions to biodiversity and sustainable use of natural resources in Latin America in a credible and FI-compatible way, as it will supply funding to financial institutions and direct financing to certified sustainable businesses, combined with technical assistance for product development, environmental and social risk management, and awareness raising.
Linda Broekhuizen, Chief Investment Officer of FMO, stresses the importance of the partnership. “This fund allows FMO to contribute to biodiversity and sustainable use of natural resources, which is essential for a world in 2050 in which 9 billion can live well and within the means of the planet’s resources.”
Dr. Jens Mackensen, Chairperson of the eco.business Fund’s board of directors, said: “This new partnership increases the ability of the eco.business Fund to support low and medium-income countries, address biodiversity conservation challenges, fight climate change and adapt to its consequences. FMO has long been a strong advocate of ecological endeavors, and its commitment will help us further consolidate investment activities, expand to new areas and establish a solid basis for more private-sector investments.”
About the eco.business Fund
The eco.business Fund is spearheading the preservation and promotion of biodiversity through private enterprises. In providing finance for investing in activities that conserve nature and foster biodiversity, the eco.business Fund seeks investments that yield both financial and environmental returns. The eco.business Fund provides funding mainly through local financial institutions for on-lending to eligible final borrowers. Eligible final borrowers include those holding an eligible certification or those making improvements that are in line with conservation and biodiversity goals. The Fund supports sustainable operations in the sectors of agriculture, fishery, forestry and eco-tourism.
The eco.business Fund leverages contributions from donors, multilateral organizations and development finance institutions with funding from private investors to maximize outreach and impact. Seed capital has been provided by the German Federal Ministry for Economic Cooperation and Development (BMZ), with KfW being the main sponsor. Finance in Motion is also an investor.
Operating hand-in-hand with the eco.business Fund, the eco.business Development Facility, which provides high-impact technical assistance at the sector level to local lending institutions and final borrowers.
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 46 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8.9 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
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