IDB Invest Supports Food Security through Sustainable Fund for Latin America and the Caribbean
IDB Invest is investing up to $15 million in responsAbility Sustainable Food Fund – Latam I, SLP to support sustainable agribusiness across Latin America and the Caribbean. The fund will focus on Mexico, Peru, Colombia, and Chile, as well as invest in Central America and the Caribbean to benefit global food security.
The fund will mostly make structured debt (mezzanine) investments in fruit & vegetables mid-sized producers, with a sustainable agriculture impact strategy aimed at strengthening value chains with a climate focus.
IDB Invest’s investment, together with the fund’s general partner and other partners, helped the fund reach its second closing at $123 million and is well-underway toward its final target of $200 million to $250 million. In addition, IDB Invest will provide advisory services to build capacity, reinforce the fund’s sustainability and adopt Paris Alignment strategies.
This is the first time IDB Invest is investing with impact manager responsAbility Investments AG. Additionally, this will be responsAbility's first fund entirely dedicated to the Latin America and Caribbean region and is managed by an experienced team based out of Mexico and Peru.
By providing mezzanine finance, operational expertise, a network of strategic partners, and a sustainability lens to its investments, responsAbility will support the growth and regional expansion of mid-sized companies in fruit and vegetables.
The fund will contribute to the following United Nations’ Sustainable Development Goals (SDGs): Decent Work and Quality Jobs (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Responsible Consumption and Production (SDG 12), and Climate Action (SDG 13). Additional SDGs will be supported through responsAbility's overall environmental and social program.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About responsAbility Investments AG
responsAbility is a leading impact asset manager specializing in private market investments across three investment themes to directly contribute to the SDGs: Financial Inclusion, to finance the growth of Micro & SMEs; Climate Finance, to contribute to a net zero pathway; and Sustainable Food, to sustainably feed an ever-growing population. All responsAbility investment solutions target specific measurable impact alongside market returns. Since its inception in 2003, responsAbility has deployed over $14 billion in impact investments. With over 270 employees collaborating across eight offices, as of October 1, 2023, the company manages $4.7 billion in assets across approximately 270 portfolio companies in 72 countries. Since 2022 responsAbility is part of M&G plc, the international savings, and investments business, and contributes to enhancing M&G’s capabilities in impact investing.