eco.business Fund invests in Bam to promote sustainable use of natural resources in Guatemala
Article originally published on eco.business Fund's website on 04/12/2024. LACIF contributes to eco.business Fund through technical assistance and financial instruments.
The eco.business Fund (EBF) has extended a USD 35 million, two-year senior loan to Banco Agromercantil de Guatemala (Bam) to further promote sustainable agribusiness practices in the region. This financing will directly support certified companies and green projects in key agricultural sub-sectors such as coffee, banana, and sugarcane, bolstering climate change adaptation and responsible resource use.
This transaction builds a previous partnership established in 2020. Bam, a subsidiary of Grupo Bancolombia and one of the oldest financial institutions in Guatemala, has demonstrated a strong commitment to sustainability. Bam has a strong commitment towards financing sustainable production in the Country’s agribusiness sector. This new cooperation between the eco.business Fund and Bam will support the Bank to further expand its green portfolio, focusing on certified production of shrimp and key crops such as coffee, banana, and sugarcane, all adhering to recognized sustainability standards that include but are not limited to Rainforest Alliance, Aquaculture Stewardship Council, Best Aquaculture Practices, Fairtrade, and Bonsucro EU. By targeting the agribusiness sector, Bam and the eco.business Fund are addressing some of the most pressing environmental challenges facing Guatemala, including deforestation and water management, while increasing the banking penetration within the sector.
"This bilateral partnership allows EBF to continue its mission of promoting sustainability in the region's key sectors," said Michael Evers, Chairperson of the eco.business Fund. “We believe this investment will not only facilitate sustainable growth but also drive significant environmental and social impact, helping address challenges such as deforestation, water scarcity, and climate resilience."
Manuel Chávez, Vice President of Finance, Bam, expressed his enthusiasm for the collaboration: "At Bam, we are committed to supporting sustainable practices across all sectors. Our partnership with the eco.business Fund enables us to extend crucial financing to producers who are driving change through sustainable agriculture, helping mitigate climate risks and promoting responsible resource use."
This partnership supports several Sustainable Development Goals (SDGs), particularly SDG 2 (Zero Hunger), SDG 8 (Decent Work and Economic Growth), SDG 13 (Climate Action), SDG 14 (Life Below Water), SDG 15 (Life on Land), and SDG 17 (Partnerships for the Goals), contributing to Guatemala’s long-term economic resilience and environmental health.
Hector Gomez Ang, Director for the Fund at Finance in Motion, emphasized the long-term impact of this partnership: “Our collaboration with Bam is expected to accelerate the adoption of sustainable practices in Guatemala's agribusiness sector, facilitating long-term environmental benefits and fostering economic inclusion in rural areas. This is a significant step toward scaling climate-resilient agriculture across the region.”
About Banco Agromercantil de Guatemala (Bam)
Bam, with 98 years in Guatemala, is a bank that is part of one of the largest financial groups in Latin America, Grupo Bancolombia, whose purpose is to promote sustainable economic development to achieve the welfare of all.
For more information please visit www.bam.com.gt
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 Bam
Carolina Rivas Le Sage
Communications manager
Phone: +502 5433-8186
Email: carolina.rivas@bam.com.gt
