The AGRI3 Fund aims to mobilise USD 1 billion of financing by providing credit enhancement tools and technical assistance to enable a transition to more sustainable practices in agricultural value chains and avert deforestation.
The Fund will provide guarantees to commercial banks and other financial institutions, and subordinated loans to customers of these institutions, which will become known as ‘partner-banks’, to mobilise financing by de-risking and catalysing transactions that actively prevent deforestation; stimulate reforestation; contribute to efficient sustainable agricultural production; and improve rural livelihoods.
A Technical Assistance (TA) facility has also been established to accelerate the development of investable opportunities and maximise their impacts. The TA Facility is managed by IDH The Sustainable Trade Initiative and works closely with the Fund Manager and Investment Advisers.
The Fund was born out of a partnership between UN Environment and Rabobank, who came together in 2017 to announce an ambitious partnership with the aim to unlock at least USD 1 billion in finance towards deforestation-free, sustainable agriculture and land use. The partnership has since expanded to include the Dutch development bank (FMO) and IDH The Sustainable Trade Initiative.
The mission of AGRI3 Fund is to mobilise additional public and private capital at scale, including commercial banks, development finance institutions (DFIs), impact investors and institutional investors to: actively prevent deforestation; stimulate reforestation; contribute to efficient sustainable agricultural production and value chains; and reduce carbon emissions and improve rural livelihoods.
To generate substantial, measurable environmental and social (E&S) impact by meeting the key performance indicators.