Project detail - AGRIF COOPERATIEF U.A

Who is our customer

agRIF is the successor fund of Rural Impulse Fund I and Rural Impulse Fund II, all of which make investments in financial inclusion for the rural sector. agRIF takes this model one step further by specifically targeting the agricultural sector and smallholder farmers, as well as rural micro-entrepreneurs. In addition to the equity investments targeted by the fund, agRIF provides debt investments in agricultural SMEs and agricultural focused financial intermediaries. agRIF is managed by Incofin Investment Management.

What is our funding objective?

agRIF seeks to address the scarcity of financial services in developing countries. The objective of agRIF is to generate an attractive return of 15-17% to investors, and enhance financial inclusion in the agricultural value chain, with a focus on smallholder farmers and rural (M)SMEs. The Fund will be making senior debt and equity investments in financial intermediaries (MFIs, banks, NBFIs) with a strong commitment to serving agricultural and rural markets, as well as debt investments directly into producer organizations and SMEs in the agriculture value chain.

Why do we fund this investment?

agRIF will create a much needed source of capital to smallholders and SMEs active in the agri-space, a target group that is otherwise hard to reach directly for FMO.

What is the Environmental and Social categorization rationale?

The environmental and social category for agRIF is B, as most of the investments will be made in microfinance and financial institutions. The fund has an extensive E&S policy in place, developed in line with the requirements of several DFI investors. The fund manager is a founding signatory of the Smart Campaign, has endorsed the Client Protection Principles and incorporates those in its social performance evaluation and monitoring. IIM is also a signatory of the Principles for Investors in Inclusive Finance (PIIF) developed under the UN PRI.