Responsability Climate-Smart Agriculture & Food Systems Funds (FMO-61442)

Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 24, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Climate-Smart Agriculture & Food Fund (the Fund)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Investment Type(s)
Fund
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 14.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 14.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Jul 12, 2023

Disclosed by Bank Aug 25, 2022

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The customer in this project is FMO, a financial institution. They are funding the recently launched Climate-Smart Agriculture & Food Fund (the Fund), which is a debt fund targeting food systems transformation. The Fund aims to provide long-term expansion debt to innovative businesses operating in the food value chain in Asia Pacific, Latin America, and Africa. The goal is to mitigate climate change, reduce food loss, and promote climate change resilience among smallholder farmers. FMO has subscribed up to USD 25 million committed facility to the fund with senior class shares.

The funding objective is to support Agri SMEs (small and medium-sized enterprises) in tackling the challenges of climate change and increased demand for food. The Fund's strategy focuses on sustainable intensification of production, value adding and efficient processing and logistics, sustainable and inclusive retail and food brands, and climate technology and solutions providers. FMO funds this investment because there is a lack of long-term financing for Agri SMEs in this sector, and through this financing, FMO can indirectly reach these SMEs and the underlying smallholders. This investment aligns with FMO's goals of reducing inequalities and promoting green labels.

In terms of environmental and social categorization, the Fund falls under the 'Private Equity risk category A' due to its broad agricultural sector focus and global mandate. The expected E&S risks are linked to risk management, labor, resource efficiency, community, and biodiversity. The investment house responsible for the Fund has a strong E&S management system in place that aligns with FMO's requirements and international standards.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

FMO’s client is the recently launched Climate-Smart Agriculture & Food Fund (the Fund), A USD 200mln close-ended debt fund targeting food systems transformation. FMO has subscribed up to USD 25 mln committed facility to the fund with senior class shares. In which, USD 21.5 mln was subscribed in the second closing, and the balance of up to USD 3.5 remains to be subscribed in the third closing.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project contacts not provided at the time of disclosure.

 

ACCESS TO INFORMATION

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works