The ABC Fund is awarded the LuxFLAG ESG Label
The Agri-Business Capital Fund (ABC Fund) has qualified for the ESG Label awarded by independent investment fund rating agency LuxFLAG.
LuxFLAG is a non-profit association created in Luxembourg in July 2006 and has established itself as a market benchmark for sustainable finance.
Its objective is to reassure investors that funds follow environmental, social and governance criteria at every stage of the investment process. The eligibility criteria for the ESG Label requires applicant funds to screen the entirety of their invested portfolio according to one of the ESG strategies and standards recognised by LuxFLAG.
The ABC Fund is a blended-finance impact fund which provides catalytic financing to underserved yet profitable segments of agribusiness value chains in developing countries. ESG screening is a key component of the ABC Fund’s investment process and is applied across the full breadth of the portfolio. The ABC Fund is managed by Bamboo Capital Partners in partnership with Injaro as investment advisors and with Technical Assistance led by Agriterra.
The ABC Fund deploys loans and equity investments in farmer organisations, rural SMEs and financial institutions. They have potential for high growth and job creation and can also drive social development for their own communities and countries, but they often lack the capital they need to grow their businesses.
As of today, the ABC Fund has provided financing to six rural organisations in Côte d’Ivoire, Ghana, Burkina Faso and Ecuador. The financed organisations include two farmer’s cooperatives, three agri-SMEs and a microfinance institution. Together these investments will support 23,000 smallholder farmers. The ABC Fund’s Technical Assistance facility currently supports five organisations with capacity building mainly in the field of business development and financial services.
The ABC Fund was initiated by the International Fund for Agricultural Development (IFAD) in partnership with, and is currently funded by investments from, the European Union, the Organisation of African, Caribbean and Pacific States (OACPS), IFAD, the Luxembourg Government and the Alliance for a Green Revolution in Africa (AGRA). The IFAD investment was made possible thanks to financial support from the Swiss Development Cooperation. The EU/OACPS resources are exclusively used for action in the African, Caribbean and Pacific (ACP) region, and the AGRA resources only for Sub-Saharan Africa.
Jean-Philippe De Schrevel, Founder and Managing Partner at Bamboo Capital Partners, says: “The appropriate screening and measurement of the impact our portfolio companies generate is crucial to the long-term success of the ABC Fund. We are delighted that the ABC Fund has been recognised by LuxFLAG for our rigorous approach to ESG management at every stage of the investment process.”