INDIA AGRI BUSINESS FUND II LIMITED
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
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
India Agri Business Fund II is the follow-on fund of India Agri Business Fund, with the objective of investing in equity and equity-linked instruments in companies focused primarily on the Indian food and agricultural sectors, covering all areas of the value chain. It fund aims to drive development in three ways: (i) productivity improvement through high quality inputs and farm services; (ii) wastage reduction through investments in storage and logistics, and; (iii) focus on quality through feeds and additives and value added services. The fund is sponsored by Rabobank and managed by Rabo Equity Management Company.
What is our funding objective?
Ensuring food security in India is an two-pronged endeavor that involves (i) increasing farm yields (India's productivity in field crops and animal protein is far below the global average) and (ii) reducing food and agricultural wastage and loss (15% of food grain is lost every year in India due to lack of proper storage). The increasing gap in demand and supply has also led to food inflation, increasing food imports and consequently threatening food security. The capital required to realize food security is still scarce in India, even after accounting for the entry of generic PE funds into the sector. Through its investments, the India Agri Business Fund II aims to bring about operational, supply chain and technical efficiency in the agricultural sector.
Why do we fund this investment?
Through FMO's investment, long-term capital will be made available to a market segment in India that is in dire need of capital. By participating in the first close, FMO ensures that the fund is successfully launched. FMO's commitment may also serve as an additional "stamp of approval" for the fund and may help attract commercial interest in the fund.
- Region
- Asia
- Country
- India
- Sector
- Agribusiness, Food & Water
- Effective date
- 10/28/2014
- Total FMO financing
- USD 10.00 MLN
- Funding
- FMO NV
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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