Green Resources AS
Status: Completed 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
Norwegian company Green Resources AS (GRAS, founded in 1995) is East Africa's leading forestation and timber processing company. GRAS has raised over US$100 mln in equity and invested in upstream plantations (25,000 ha of eucalyptus and pine) and downstream industrial timber processing equipment (largest sawmill in East Africa). GRAS' business model includes the creation of carbon credits on 70% of their plantation forests, which makes them one of the first global companies to receive forest carbon revenues. Currently 76% of GRAS' forest is FSC certified. The company is aiming for 100% certification.
What is our funding objective?
FMO's financing will fund new timber processing equipment, plantations and general working capital requirements. FMO's fundign complements that of fellow development finance institutions, Finnfund and Norfund (US$25 mln).
Why do we fund this investment?
The project's development impact is in providing long-term funding for forestry in Africa, which is currently unavailable. In addition, FMO's non-financial contribution is significant: developing an environmental and social risk monitoring system and a stakeholder management plan. The project contributes strongly to CO2 reduction and tackling climate change.
- Region
- Africa
- Country
- Africa
- Sector
- Agribusiness, Food & Water
- Effective date
- 11/20/2013
- End date
- 3/12/2024
- Total FMO financing
- USD 20.00 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