eco.business Fund invests in the Brazilian market for the first time
The eco.business Fund, advised by Frankfurt-based impact investment firm Finance in Motion, has granted a loan of USD 20 million to Banco Industrial do Brasil (BIB). This is the first time the fund has become active in Latin America's largest economy. "Brazil's path to sustainability is more challenging, as it is one of the largest suppliers of agricultural products in the world,” says Michael Evers, chairperson of the fund’s Board of Directors. “Through our partner BIB, we can provide financing in the small and medium-sized enterprise segment and pave the way for greater sustainability.” He added.
Small companies in particular are often undersupplied with financing options in Brazil. As a medium-sized bank, BIB has built up a great deal of expertise in this area over the past 25 years. “BIB serves SMEs from eleven locations, including Brazil's most relevant industrial hubs,” says Hector Gomez Ang, the director for the fund at Finance in Motion. The loan granted to BIB by the eco.business Fund is dedicated entirely to promoting sustainable certified production measures in companies in this economic segment, thus helping to close the financing gap.
“Banco Industrial do Brasil S.A. (BIB) is delighted to be the first Brazilian bank to receive the support of Finance in Motion through eco.business Fund. This transaction shows BIB’s commitment towards companies that are concerned with sustainability”, says Guilherme Gottardi, CFO at BIB.
The loan has a term of three years, including a 12-month grace period. "channeling resources through a partner bank such as BIB is one of the alternatives eco.business Fund has to promote and support sustainable practices in small and medium sized companies. However, the Fund also plans to invest supporting companies directly," says Hector. "In a country like Brazil there are plenty of target investments available, and we have a very interesting investment pipeline to support the agricultural and forestry sector in Brazil.", he added.
