22 December 2014
Press Release - Finance in Motion, KfW and Conservation International launch first biodiversity fund in Latin America
Finance in Motion, KfW and the US non-governmental organization Conservation International (CI) together founded the eco.business fund. The fund enables businesses in Latin America to make investments that contribute towards preserving biodiversity and the sustainable use of natural resources – for example, in agriculture, forestry and fishing, as well as in eco-tourism.
The Federal Ministry for Economic Cooperation and Development (BMZ) provides seed capital of EUR 17 million that KfW incorporates in the fund. CI together with Finance in Motion will also invest in the fund at the start of 2015. The eco.business fund is launched as a public-private partnership (PPP) and allows the various investors to invest in capital tranches with a diversified risk-return profile. With this structure, public as well as private funds can be mobilized for protecting biodiversity.
“Latin America is one of the regions with the most abundant wealth of biodiversity. However, these valuable resources are seriously threatened by human activities. Linking the preservation of biodiversity with an economic approach is new territory for Latin America and the right approach in view of the great challenge and considerable financial requirement”, commented Dr Norbert Kloppenburg, Member of the Executive Board of KfW Group.
These companies are funded either directly through the fund or with the help of financial intermediaries.
“The continent finds itself in a prolonged phase of economic growth and stability. One of the roles of the eco.business fund is to strengthen the role of local financial intermediaries in promoting environmentally-friendly manufacturing processes. In the long term, the application of such methods will be essential for securing sustainable economic growth and prosperity”, explained Sylvia Wisniwski, Managing Director of Finance in Motion.
“Conservation International (CI) has long been committed to supporting environmentally responsible businesses that provide jobs and help secure human well-being,”, said Jennifer Morris, chief operating officer of Conservation International. “eco.business builds on this experience. Targeting small and medium-sized businesses that deliver environmental, socioeconomic and financial benefits is vital to the reduction of poverty and development of healthy, sustainable communities.”
Besides the fund, a development facility is also created, which will provide specialist support to the financial intermediaries and their customers. This should secure the sustainable implementation of the fund's investments. The Federal Ministry for Economic Cooperation and Development plans up to EUR 3 million for this purpose. Both the fund as well as the development facility are open to further investors to participate in the development policy direction of "eco business".
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About Finance in Motion
Finance in Motion is an alternative asset manager exclusively focused on development finance and manages investment vehicles to promote sustainable economic, social and environmental development. Finance in Motion has over EUR 1.4 billion of investor commitments under management (as at 30 September 2014) leveraging development aid through public private partnerships. In line with the development mission of each fund, Finance in Motion develops partnerships with eligible financial institutions and projects covering debt, mezzanine and equity, as well as non-financial advisory services (technical assistance). Finance in Motion has offices in Frankfurt/Main, Germany, and in a further 12 cities covering operations in 24 countries in Southeastern Europe, the Caucasus, the Middle East and North Africa. Finance in Motion currently provides asset management and technical assistance management services to the following development finance vehicles: the European Fund for Southeast Europe (EFSE) – finance for micro-, small and medium enterprises (MSME finance); the Green for Growth Fund, Southeast Europe (GGF) – energy efficiency and renewable energy; and the SANAD Fund in the Middle East and North Africa region – finance for micro-, small and medium enterprises (MSME finance) and employment creation.
About KfW Development Bank
KfW is one of the world´s leading and most experienced promotional banks. Established in 1948 as a public law institution, KfW is owned 80 per cent by the Federal Republic of Germany and 20 per cent by the federal states (“Länder”). KfW Development Bank is Germany’s leading development bank and an integral part of KfW. It carries out Germany´s Financial Cooperation (FC) with developing countries on behalf of the Federal Government. The 600 personnel at headquarters and about 200 specialists in its 66 local offices cooperate with partners all over the world. Its goal is to combat poverty, secure the peace, protect the environment and the climate and make globalization fair. KfW is a competent and strategic advisor on current development issues. For more information please visit http://www.kfw-entwicklungsbank.de/
About Conservation International
Since 1987, Conservation International has been working to improve human well-being through the care of nature. With the guiding principle that nature doesn't need people, but people need nature for food, water, health and livelihoods—CI works with more than 1,000 partners around the world to ensure a healthy, more prosperous planet that supports the well-being of people. Learn more about CI and the "Nature Is Speaking" campaign, and follow CI's work on Facebook, Twitter and YouTube.
Media contact Finance in Motion
Manager, Communications and Events
Tel: +49 (0)69 / 977 876 50-171
Fax: +49 (0)69 / 977 876 50-10
Media contact KfW
Dr. Charis Pöthig
Tel: +49 69 7431 4683
Fax: +49 69 7431 3266
Media contact Conservation International
Tel: +1 703 341 2405