eco.business Fund invests in Banco de Desenvolvimento de Minas Gerais to promote sustainable agriculture in Brazil
Article originally published on eco.business Fund's website on 10/12/2024. LACIF contributes to eco.business Fund through technical assistance and financial instruments.
The eco.business Fund has committed a USD 30 million investment in Banco de Desenvolvimento de Minas Gerais S.A. (BDMG), to advance sustainable practices within the agribusiness sector in Brazil. This investment is part of a USD 250 million AB Loan transaction structured and arranged by CAF - Development Bank of Latin America and the Caribbean.
This facility highlights eco.business’ leadership in supporting climate-resilient agribusiness initiatives, addressing a critical funding gap in green finance across de region. By collaborating with CAF and BDMG, the EBF reinforces its mission to drive impactful environmental and social outcomes in Latin America.
BDMG’s strong commitment to sustainability aligns with the State of Minas Gerais’s Climate Action Plan, which targets net-zero greenhouse gas emissions by 2050. The Bank's strategy also reflects the principles of the Paris Agreement and the United Nations Sustainable Development Goals (SDGs). This new facility will enable the adoption of climate-smart agricultural technologies, promote projects to reduce greenhouse gas emissions, and support soil regeneration initiatives, advancing both environmental sustainability and economic resilience.
This investment represents a significant step forward for the eco.business Fund, further strengthening its impact in promoting sustainable finance and innovation within key sectors that drive economic growth while preserving natural resources.
About Banco de Desenvolvimento de Minas Gerais S.A. - BDMG
The Banco de Desenvolvimento de Minas Gerais (BDMG) is a Brazilian public financial institution, created in 1962 to foster sustainable development in Minas Gerais through strategic financial solutions. BDMG supports infrastructure, innovation, and business competitiveness projects, focusing on sustainability and small and medium-sized enterprises, promoting economic and social growth in the region.
For more information please visit www.bdmg.mg.gov.br
About the eco.business Fund
The eco.business Fund aims to promote business and consumption practices that contribute to biodiversity conservation, to the sustainable use of natural resources, and to mitigate climate change and adapt to its impacts in Latin America, the Caribbean, and sub-Saharan Africa. By providing financing for business practices that conserve nature and foster biodiversity, the fund seeks investments with both environmental and financial returns. The eco.business Fund provides financing through three avenues: local financial institutions that are committed to the fund’s mission and which have the capacity to reach its target group; directly to its target group (i.e. companies and producers); and in the case of sub-Saharan Africa, to real sector intermediaries. The fund supports sustainable operations in the sectors of agriculture, fishery (including aquaculture), forestry and tourism. Target beneficiaries are those that hold an eligible sustainability certification or those taking out a loan to make eligible sustainable investments in their operations.
Operating together with each of the two sub-funds, are two development facilities that provide high-impact technical assistance to investment partners and final borrowers.
An impact investment fund advised by Finance in Motion, the eco.business Fund was initiated by Germany’s KfW Development Bank and Conservation International with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ).
The sub-fund for sub-Saharan Africa was formally launched in 2020 with initial funding from BMZ.
The sub-fund for Latin America and the Caribbean has received funding from the European Commission as well as from numerous other prestigious development finance institutions and institutional investors.
For more information please visit www.ecobusiness.fund
About Finance in Motion
Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.
For more information, please visit us at: www.finance-in-motion.com
You can also follow us on X @financeinmotion and on LinkedIn
Media Contact Finance in Motion GmbH
Nusha Westhoff,
Director Marketing & Communications
Carl-von-Noorden-Platz 5
60596 Frankfurt am Main
Tel. +49 (0)69 271 035 0
E-Mail: info@finance-in-motion.com
www.finance-in-motion.com
Media contact BDMG
Isabella Lacerda
Phone:+55 31 99756-6365
Email: imprensa@bdmg.mg.gov.br
