ABF wins the call for proposals by BNDES for impact investment funds
The Amazon Biodiversity Fund (ABF) won the investment call for proposals - alongside two other initiatives - by the Brazilian Development Bank (BNDES). ABF was chosen as part of a public call for proposals from Impact Investment Funds in Brazil. The process is entering into the Due Diligence stage.
The total investment can reach up to 25% of ABF size. The fund is currently in an advanced stage of discussions with other investors, with expectations to conclude its second closing by the end of the year.
The Amazon Biodiversity Fund (ABF) was co-designed by USAID/Brazil, Alliance of Bioversity-CIAT and other PPA partners utilizing USAID’s Biodiversity Policy. During co-design, USAID provided recommendations on the Fund’s environmental, social, and governance policies and its impact approach.
The fund intends to address inherent financial challenges by providing flexible, long-term, patient capital for sustainable businesses that seek transformational, positive impact on Amazon biodiversity and communities.
In 2021, the fund signed its three long-term investments, with Manioca, a business that promotes Amazon food products, Horta da Terra, a producer of dehydrated unconventional food plants (UFPs or PANCs in the Portuguese acronym) and Inocas, a company that comercializes macaúba oil (an alternative to palm oil) with zero deforestation and focuses on sustainable production and fair trade.
The total investment will reach R$16 million, including seed money and long-term capital (2 to 3 years). In 2020, the fund received the Fund of the Year award in the multi-asset category by the Environmental Finance Impact Awards.