Clarmondial

Global Environment Facility Approves USD 15m for the Food Securities Fund

From Clarmondial:

GEF Council approves support to the Food Securities Fund

Published: Monday, January 13th, 2020

The Food Securities Fund was one of the three Non-Grant Instruments (NGI) approved by the Global Environment Facility (GEF) Council in December 2019. The global emerging markets fund, which starts with a focus on Sub Saharan Africa, was deemed to be well-aligned with GEF focal areas, including on land degradation, biodiversity, and climate change mitigation.

In recognition of this, the GEF Council approved a commitment of USD 15 million to the Fund, with Conservation International acting as its agency. This funding will be unlocked by commitments from an anchor investor, which Clarmondial will announce in the coming weeks.

Clarmondial has designed the Food Securities Fund to create significant and measurable impact through its innovative value chain finance approach. Its targets include:

  • positively impact the lives of farmers – and especially smallholder farmers and women;

  • support local SMEs to grow the number of employees and training, notably for women and youth;

  • contribute to the restoration of agricultural land;

  • help to implement sustainable agricultural practices; and

  • mitigate greenhouse gas emissions.

Gustavo Fonseca, Director of Programs at the Global Environment Facility, said: “The Global Environment Facility is pleased to support this innovative blended finance strategy that demonstrates the opportunity to mobilize private sector capital at scale for urgent environmental issues.”

Agustin Silvani, Senior Vice President of Conservation Finance at Conservation International, said that “Conservation International takes an active role in supporting new investment vehicles that can contribute meaningfully to environmental objectives. We look forward to supporting Clarmondial on the implementation of the Food Securities Fund.”

Fred Werneck, co-founder of Clarmondial, said that “The Global Environment Facility and Conservation International will provide critical support to the Food Securities Fund. Their commitment highlights the social and environmental credentials of the Fund”.

* This announcement does not constitute an offer or solicitation to any person in any jurisdiction to purchase or sell any shares. No information in this announcement should be construed as providing financial, investment, tax or other professional advice.

View the full announcement on Clarmondial’s website.

USAID provides USD 37.5m guarantee to Food Securities Fund

Clarmondial is pleased to confirm that the United States Agency for International Development (USAID), through the Bureau for Food Security (BFS) and the Development Credit Authority (DCA), will support the Food Securities Fund with a USD 37.5 million credit guarantee. The agreement covers a portfolio of up to USD 150 million.

After extensive due diligence, USAID approved significant support to the implementation of the Food Securities Fund. In addition to its investment objectives and strategy, the Fund was selected based on its alignment with USAID’s impact priorities, in particular on sustainable agriculture and food security in Feed the Future countries. USAID and Clarmondial are planning an invitation-only signing ceremony with key partners in Washington DC this November.

The Food Securities Fund combines an innovative investment strategy with a standard and liquid fixed-income fund structure in Luxembourg to deliver change at scale. The Fund addresses the gap in season-long loans for agriculture production in emerging markets, thereby contributing to the UN Sustainable Development Goals – notably SDGs 1, 2, 8, 12, 13 and 15 – by promoting climate smart agriculture and responsible, deforestation-free supply chains.

The fund offers investors access to growth markets. The use of blended finance significantly reduces risk, while partnerships with leading international companies grant access to an extensive pipeline at low transaction costs.

The Food Securities Fund is supported by the blended finance platform Convergence (announcement available here). It has also received support from Climate-KIC, as well as from leading companies in the agricultural sector.

Clarmondial Announces New Advisory Board Member

Clarmondial is thrilled to announce that Christian Speckhardt, ex Chief Investment Officer of ResponsAbility will join them as an active advisory board member, alongside the ex-CEO & CFO of Syngenta (John Ramsay) and ex-CEO of Adveq (Sven Lidén). 

For further information please visit Clarmondial's website.

Launch of Environmental Impact Reporting in Agriculture (EIRA) with Clarmondial and Wageningen University

Clarmondial AG and Wageningen Environmental Research (WEnR), supported by EIT Climate-KIC’s Climate-Smart Agriculture (CSA) Booster, have joined forces on a new initiative to promote transparency and science-based approaches to monitoring environmental impacts in agricultural supply chains.

EIRA (Environmental Impact Reporting for Agriculture) is a new reporting initiative designed to boost environmental stewardship across complex agricultural supply chains by aggregating and synthesizing key environmental impact metrics for agriculture. EIRA is intended to result in a new, low-cost, science-based tool to help financiers and agri-businesses benchmark and compare their environmental impact performance to inform better decision-making, to aggregate existing data sources, and to highlight critical research gaps.

Further information is available in the full press release.

New Clarmondial and WWF Report on Conservation Investments

Clarmondial and the WWF Landscape Finance Lab have produced “Capitalising Conservation”, a new report exploring how conservation organisations and their partners can mobilise private investment in conservation. The report provides a framework to guide the identification, structuring and execution of investments in conservation. It describes various roles conservation organisations can play to unlock investment capital and supports effective investor engagement.

The publication highlights how leading conservation organisations have pioneered investment strategies and structures in conservation finance, illustrated by case studies involving Conservation International, NatureVest (The Nature Conservancy), Rewilding Europe, Wildlife Conservation Society, Wildlife Works and WWF. It features a foreword by Naoko Ishii, the CEO of the Global Environment Facility (GEF), and the perspective of corporates and investment partners including Nespresso and Finance in Motion.

The Capitalising Conservation report is available here.
The press release regarding the report is available here.