Amazonia Nativa S.A.S
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
Amazonia Nativa S.A.S. (“AN” or “the Company”) is a newly established Colombian company ("SPV") that has been set up for the purpose of this pilot project. The Company is jointly governed by ACT Group (''ACT'') and Campo Capital (''CC'). ACT is a global provider of market-based sustainability solutions including carbon markets expertise and advisory, carbon project development and commercialization of carbon credits. CC is a private enterprise specializing in the development of forestry and agriculture projects in Colombia and Peru.
What is our funding objective?
AN is an agroforestry/afforestation project in Colombia with the objective to afforest suitable land (degraded pasture land primarily being used for cattle ranching) with a mix of native timber species and acai palms, that will (i) sequester carbon dioxide for climate mitigation, (ii) improve soil fertility and biodiversity, (iii) reduce erosion, and (iv) produce revenues from carbon/agriculture activities and ultimately also revenues from sustainable timber (from years 21-30). This Repayable Development Contribution ("RDC") is to fund the pilot phase of the project to plant 550 ha (530 ha native timber species, and 20 ha acai palms) to demonstrate that the program is scalable to at least 5,000 ha.
Why do we fund this investment?
The proposed RDC fits well with MFF’s mandate as AN’s business model involves the afforestation of degraded ecosystems to deliver climate change mitigation outcomes, whilst supporting local economic development. AN is being delivered by a highly credible partnership between a local forestry operator with proven track record and deep knowledge of the Colombian context, and an international carbon project developer with experience, resources and a large network of potential funders and carbon credit off-takers. AN also presents an opportunity for FMO to gain exposure to the native species plantations, seen as an important emerging area in forestry for the protection and enhancement of biodiversity. The RDC will also give FMO a preferential first right of refusal to invest in the scale-up phase, through which it can earn both a financial return and achieve climate and other development impacts at scale.
- Region
- Latin America & The Caribbean
- Country
- Colombia
- Sector
- Agribusiness, Food & Water
- Publication date
- 5/15/2024
- Effective date
- 4/25/2024
- Total FMO financing
- USD 0.90 MLN
- Funding
- Mobilizing Finance for Forests