eco.business Fund joins IFC USD 100 million syndicated loan to Banco Davivienda – expanding access to finance for agribusinesses in Colombia
The eco.business Fund has provided a B Loan of USD 12.5 million, as part of a USD 100 million A/B Loan arranged by the International Finance Corporation (IFC) to Banco Davivienda in Colombia. The participation of the eco.business Fund in the transaction will support the bank’s agricultural lending program which targets certified producers that commit to best environmental and social practices.
Banco Davivienda is the second largest commercial bank in Colombia and holds banking operations in Panama, Costa Rica, El Salvador, and Honduras. This is the fund’s third investment with Banco Davivienda, the first having taken place in 2015 in Costa Rica, and the second in 2019 in Colombia. The investment will support producers that hold a sustainability standard that have incorporated responsible practices within their operations.
Dr. Jens Mackensen, Chairperson of the Board of Directors of the eco.business Fund, stated: “Investing in sustainability is at the core of our mission. That’s why we are proud to be a B Lender of IFC’s syndicated loan to Banco Davivienda, a longstanding partner since 2015, and support them in their endeavor to promote sustainable principles and practices across the markets in which they operate.”
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. By providing financing for business practices that conserve nature and foster biodiversity, the fund seeks investments with both environmental and financial returns. The fund mainly provides loans to qualified financial institutions that on-lend the money to eligible borrowers, which include holders of recognized certifications or those making improvements in line with conservation and biodiversity goals. The fund supports sustainable operations in the sectors of agriculture, fishery (including aquaculture), forestry and tourism.
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). It has received further donor support from the European Commission The fund’s additional investor base comprises IDB Invest, a member of the Inter-American Development Bank (IDB) Group, the U.K. government’s Department for Environment, Food and Rural Affairs, Dutch development bank FMO, Austrian development bank OeEB, and institutional investors such as sustainable banking institution ASN Bank, German ethical bank GLS Bank, Calvert Impact Capital, and Raiffeisen Bank International. Finance in Motion, a leading impact investing company, is also an investor.
Operating hand-in-hand with the eco.business Fund, the eco.business Development Facility provides high-impact technical assistance to financial institutions and final borrowers.
For more information please visit www.ecobusiness.fund and follow us on Twitter @ecobusinessfund.