Zurich – ResponsAbility, Zurich-based investment house for impact-oriented investments in emerging markets, has acquired $106 million for climate-resilient agricultural projects in a private credit strategy, including from Canada and the US. International financial institutions have joined the fund.
Zurich-based investment house responsAbility has launched a $106 million private credit strategy in collaboration with the Consultative Group on International Agricultural Research(CGIAR) network and German development bank KfW as anchor investors, and the U.S. International Development Finance Corporation as guarantor. According to a media release, the Climate Smart Food Systems Fund thus created will provide long-term financing for innovative agribusinesses in the Asia-Pacific region, Latin America and Africa. The goal is to mitigate climate change, reduce food product losses, and promote resilience in their value chains to climate change.
“With responsAbility’s 20 years of experience in this sector, we can demonstrate that there are investable projects in this severely underfunded area,” Suhasini Singh, Senior Manager and Head of Sustainable Food Debt at responsAbility, is quoted as saying in the release. Global Affairs Canada, the Netherlands Bank for Entrepreneurial Development(FMO), the Danish Investment Fund for Developing Countries(IFU), the Visa Foundation, Calvert Impact Capital, and Bank of America and Ceniarth have been secured as key investors.
“We are pleased to help provide climate-smart measures and technologies for rural farmers,” said Amy Brusiloff, community development executive at Bank of America. This, he said, is “an important aspect of achieving environmental justice.” According to Canada’s Minister of International Development, Harjit S. Sajjan, Canada’s $36.8 million share of the fund alone will “provide loans and technical assistance to up to 30 small and medium-sized agricultural enterprises to support climate-smart measures, help them adapt to climate change and make food systems more resilient to crises.” ce/ww