Rabobank and the Dutch government to anchor the AGR13 Fund with investments totaling $80M

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GlobalAgInvesting | 24 January 2020

Rabobank and the Dutch government to anchor the AGR13 Fund with investments totaling $80M
 
By Lynda Kiernan
 
The Dutch Ministry of Foreign Affairs and Rabobank have both announced at the World Economic Forum in Davos, Switzerland, their commitment to anchor the AGR13 Fund, a $1 billion sustainable agriculture and forestry initiative with matching cornerstone investments of $40 million each. 
 
“The AGRI3 Fund provides a unique opportunity to contribute to forest protection and sustainable agriculture at scale, while also helping to transform the financial sector’s attitude towards sustainable investments,” said HE Sigrid Kaag, the Dutch Minister for Foreign Trade and Development Cooperation.
 
Created by the UN Environment Programme, together with Rabobank and The Sustainable Trade Initiative (IDH), and supported by FMO, the Dutch entrepreneurial development bank, the fund was launched with the goal of mitigating climate change.
 
To meet this goal AGR13 has a funding goal of $1 billion, and will serve as a blended finance vehicle, providing risk mitigating financial offerings and grants for technical assistance for farmers and food value chains.
 
Taken together, the Dutch investment and matching contribution from Rabobank will mobilize commercial finance in support of sustainable agriculture and greater protection for forests. 
 
“AGRI3 and similar land use facilities, catalyzed with the support of UNEP, are the cornerstone of the financial architecture for deforestation-free and nature-positive agriculture,” said Inger Andersen, executive director of the UN Environmental Programme (UNEP).
 
“We are very grateful to the Dutch government for their crucial contribution to the AGRI3 Fund. It is time for banks, investors, governments and agribusinesses to join institutions like Rabobank in financing sustainable food and forestry value chains, to save the climate, protect biodiversity, and ensure sustainable development,” Andersen continued.
 
With $80 million in anchor capital in place, the AGR13 Fund is expected to be active and operational in the first half of 2020, and is open for other financial institutions and banks to join. It is intended to unlock further resources for impact investors, and drive sustainable agriculture initiatives at scale by making alternative financing options available to farmers and food processors.
 
“As a cooperative bank, we see it as our role to help our clients accomplish the required shift in the agricultural value chains,” said Wiebe Draijer, chairman of the Managing Board of Rabobank.
 
“The Dutch government supporting our partnership is a more than welcome complement. Together with our contribution, I’m utterly convinced these combined contributions will spur this shift.”
Original source: GAI
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