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 SICAV-SIF is an evergreen impact investing fund established in 2012 that focuses on sustainable agri value chains and focus on smallholder farmers, currently in Latin America and Africa. It provides trade finance to Small producer organizations (SPO) that have a sustainability certification, with an emphasis on Fairtrade certification. It also provides financing to agri SMEs and microfinance institutions financing agricultural activities. The fund is advised by Incofin Investment Management, an Antwerp-based investment manager with a track record in the financial inclusion and agricultural space in emerging markets.
What is our funding objective?
FMO provides the fund with a revolving credit facility to finance the annual growth of the portfolio that results from financing seasonal crops such as coffee.
Why do we fund this investment?
The fund provides market access and financing to thousands of smallholder farmers that subscribe to better sustainability practices: in 2020, the fund supported over 327,000 farmers with 892,871 hectares under cultivation in 20 African and Latin American countries. Since most clients are certified under a sustainability certification, this has translated into premiums resulting in income stability for individual farmers as well as investments in community-based healthcare, education, infrastructure and, more importantly in 2020, pandemic mitigation and safety projects.
What is the Environmental and Social categorization rationale?
Fairtrade Access Fund (FAF) is considered to have environmental & social risk Category FI-B, in accordance with FMO's Sustainability Policy. As part of this facility, FAF will be required to apply the EDFI Exclusion List and national E&S laws and regulations. FAF is a mature fund (it started in 2012) which works with clients who can demonstrate adherence to sustainability certifications, with a focus on Fairtrade certification. FAF has in place an environmental & social management system -currently being upgraded- which includes a proprietary tool (ECHOS 2.0 tool) used to monitor ESG performance, and which is used to enhance the Fund's environmental & social risk management capacity and its client engagement on environmental & social impacts.
More investments
| Date | Total FMO financing |
|---|---|
| 1/30/2018 | EUR 0.20 MLN |
| 12/23/2013 | USD 5.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Latin America & The Caribbean
- Sector
- Agribusiness, Food & Water
- Publication date
- 10/13/2021
- Effective date
- 3/30/2022
- Total FMO financing
- USD 3.50 MLN
- Funding
- MASSIF
-
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