FAIRTRADE ACCESS FUND SA, SICAV-SIF
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Fairtrade Access Fund (FAF) is an impact investing fund that benefits smallholder farmers by providing debt to well-run producer organizations that are Fairtrade certified or have applied for certification. FAF is intended to introduce a unique one-stop shop that will provide trade finance, working capital, and longterm loans. FAF is managed by Incofin Investment Management (IIM), a Belgium-based fund management company with a mission to invest in companies that increase financial inclusion. Incofin has a proven track record in sustainable investing in the area of microfinance, and is extending its fund offering to agribusiness in partnership with organizations experienced in agriculture and smallholder finance (Fairtrade Organization, Grameen Foundation).
What is our funding objective?
FMO will invest US$5 mln in Class B equity, and due to the fund's 50/50 debt/equity structure, FMO's equity will catalyze US$5 mln in debt from other investors. The transaction will reach a large number of smallholders by providing finance to producer organizations (cooperatives). The initial focus of the fund is on Latin America and the Caribbean, one of the main Fairtrade markets, with later expansion to Africa and Asia.
Why do we fund this investment?
The current transaction contributes to the increased availability of better financing options for farmer cooperatives, who have limited commercial financing options. Capex facilities to be provided by the fund will serve to improve storage, drying, and other facilities in the commodity value chain. Pre-export finance will allow the cooperatives to finance purchases from farmers and provide them inputs. The cooperatives supported are all Fairtrade certified (or in process of certification) so they also adhere to high social standards and good agricultural practices.
More investments
| Date | Total FMO financing |
|---|---|
| 3/30/2022 | USD 3.50 MLN |
| 1/30/2018 | EUR 0.20 MLN |
- Region
- Latin America & The Caribbean
- Country
- Latin America & The Caribbean
- Sector
- Agribusiness, Food & Water
- Effective date
- 12/23/2013
- Total FMO financing
- USD 5.00 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B