ALTHELIA SUSTAINABLE OCEAN FUND SIF
Status: Approved investmentWhy disclosure?
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In case of questions
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
The Sustainable Ocean Fund (“ASOF”) is an investment initiative of Ecosphere Capital Ltd (UK) or “ECL”. ECL is a JV between Althelia Climate Fund GP S.a.r.L. (“ACF GP”) and Mirova, the impact investment arm of Natixis Global Asset Management.
What is our funding objective?
This proposed 7.5 mln loan will be invested as equity in ASOF, which will originate, structure and provide finance to (i) sustainable fisheries / aquaculture projects, (ii) seafood supply chains and (iii) coastal development-/conservation projects.
Why do we fund this investment?
Financing sustainable wild fisheries, aquaculture and marine conservation is still a very new activity and fund sources are scarce. Hence, FMO’s participation is highly complementary and critical to a successful fund raising.
What is the Environmental and Social categorization rationale?
E&S categorization is A. IFC Performance Standards 1-4 and 6 are triggered. IFC PS 5, 7 and 8 are not expected to be triggered as the ASOF project selection process foresees elimination of any land resettlement and focuses on strengthening ecosystem-based services that benefit local communities and contribute to protection of local cultural sites. All projects are small-scale, have no significant E&S risks, but high potential for benefits for the marine ecosystems and communities dependent on them. The reason for the A risk categorisation is that The Fund will operate in E&S high-risk countries (e.g. Colombia, Honduras and Guatemala) and sectors (e.g. aquaculture). Besides, the concept of investing into sustainable seafood projects and ecosystem conservation, restoration and livelihoods is comparatively new for financial institutions. The risk is mitigated by the Fund’s robust ESG policy, procedures and capacity, ensuring adherence of investee companies to the IFC PSs and with project selection and management focused on positive E&S impacts. ASOF has a Board of experts from NGOs and relevant entities to manage project with quarterly E&S reporting.
More investments
| Date | Total FMO financing |
|---|---|
| 6/29/2018 | USD 2.50 MLN |
- Country
- Global
- Sector
- Agribusiness, Food & Water
- Publication date
- 5/25/2018
- Effective date
- 6/29/2018
- Total FMO financing
- USD 5.00 MLN
- Funding
- Building Prospects
-
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) - A