German development bank Kreditanstalt für Wiederaufbau (KfW) is set to invest $25m in eco business, an impact investment fund aimed at strengthening Latin American biodiversity.
Ecofund announced the commitment, which is designated to the purchase of senior shares in the fund, today. It is the biggest investment to eco business today and will be dedicated to attracting further investments and to promote biodiversity and climate change adaptation and mitigation in Latin America and the Caribbean.
The eco.business fund generally provides loans to Latin American financial institutions which on-lend that funding to end-clients for businesses and projects with a significant impact on biodiversity and climate change adaptation and mitigation.
The eco.business fund chairman Jens Mackensen said: “This commitment from KfW is a sign of trust in our business model. It will allow us to further expand financing to fortify and increase biodiversity-friendly business practices in Latin America and the Caribbean. As what will be the largest investment in the fund to date, KfW’s support underlines the rapid success of the fund and the projects it supports.”
Besides KfW, seed capital has been provided by by the German Federal Ministry for Economic Cooperation and Development (BMZ) and Finance in Motion.