eco.business Fund invests in the Brazilian market for the first time

Luxembourg and São Paulo, 29 February 2024 - The eco.business Fund, advised by Frankfurt-based impact investment firm Finance in Motion, has granted a loan of USD 20 million to Banco Industrial do Brasil (BIB). This is the first time the fund has become active in Latin America's largest economy. "Brazil's path to sustainability is more challenging, as it is one of the largest suppliers of agricultural products in the world,” says Michael Evers, chairperson of the fund’s Board of Directors. “Through our partner BIB, we can provide financing in the small and medium-sized enterprise segment and pave the way for greater sustainability.” He added.

Small companies in particular are often undersupplied with financing options in Brazil. As a medium-sized bank, BIB has built up a great deal of expertise in this area over the past 25 years. “BIB serves SMEs from eleven locations, including Brazil's most relevant industrial hubs,” says Hector Gomez Ang, the director for the fund at Finance in Motion. The loan granted to BIB by the eco.business Fund is dedicated entirely to promoting sustainable certified production measures in companies in this economic segment, thus helping to close the financing gap.

“Banco Industrial do Brasil S.A. (BIB) is delighted to be the first Brazilian bank to receive the support of Finance in Motion through eco.business Fund. This transaction shows BIB’s commitment towards companies that are concerned with sustainability”, says Guilherme Gottardi, CFO at BIB.

The loan has a term of three years, including a 12-month grace period. "channeling resources through a partner bank such as BIB is one of the alternatives eco.business Fund has to promote and support  sustainable practices in small and medium sized companies. However, the Fund also plans to invest supporting companies directly," says Hector. "In a country like Brazil there are plenty of target investments available, and we have a very interesting investment pipeline to support the agricultural and forestry sector in Brazil.", he added.

About Banco Industrial do Brasil

Banco Industrial do Brasil S.A., a Brazilian privately owned bank based in São Paulo, was established in 1994 through the acquisition of Banco Santista. BIB specializes in the financing of SMEs, also works with corporate companies, and it prioritizes the high quality of its loan portfolio by adopting a conservative credit policy. Being awarded as one of the main SME Brazilian banks, BIB was recently upgraded to Ba2 by Moody´s (Nov 2023).

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

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  
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