Huge expansion of successful IDH pilot with Neumann Kaffee Gruppe – blueprint forIDH Farmfit Fund
Utrecht, October 1, 2019 –Today the Neumann Kaffee Gruppe (NKG) launches the USD 25m Coffee Smallholder Livelihoods Facility: a global investment into sustainable sourcing backed by IDH, ABN AMRO, BNP Paribas, Rabobank and USAID.该融资将为小农咖啡农民提供投资，包括肥料，幼苗和设备，现金进展，加上辅导和获取市场，使小农供应链中的小农供应链更具弹性，提高生计。
The USD 25m revolving credit facility is an innovative finance facility that involves a syndication of leading European banks underpinned by a first lost guarantee from IDH and a second loss guarantee from USAID. IDH, together with NKG will take the first loss participation of up to USD 2.5m each on potential farmer defaults. The senior financing is provided by ABN AMRO, Rabobank and BNP Paribas with USAID providing the senior lenders with a risk sharing second loss guarantee.
About 80% of the world’s coffee is produced by smallholder farmers throughout Africa, Asia and Latin America[1]. An estimated 90% do not have access to formal financial services[2]to allow them to invest in their farms, run them at full potential and improve their livelihoods. The NKG Livelihoods Facility aims to address this issue by providing short, medium and long-term financing to over 300,000 smallholder farmers that form part of NKG’s value chain in 10 countries.
The facility is a huge expansion of the successfulNKG-Ibero Uganda finance facilitythat IDH co-structured in 2017 with NKG and ABN AMRO to support Ugandan coffee farmers with cash and fertilizer advances ) and serves as the precursor to the opening of IDH’s 100 M Euro Farmfit Fund.
Blueprint for IDH Farmfit Fund
Joost Oorthuizen这种混合融资方式是未来财务安排的蓝图，我们希望通过很快运营提供IDH Farmfit Fundto millions of smallholder farmers in multiple commodities to lift them out of poverty”.
We are very happy to expand the successful innovative finance pilot we did with NKG and ABN AMRO in Uganda, into 10 new countries with ABN AMRO, BNP Paribas, Rabobank and USAID. This way of blended financing is a blueprint for future financial arrangements that we expect to offer through the soon operational IDH Farmfit Fund to millions of smallholder farmers in multiple commodities to lift them out of poverty.
万博客户端下载地址IDH Farmfit Fund是一项开拓化的融资基金，由IDH推出，以促进商业投资进入改善小农农民的生计。IDH 万博客户端下载地址Farmfit基金汇集了一个独特的公共部门投资者联盟，私营部门投资者和金融机构，以解锁规模的投资，以使价值链更加可持续。IDH 万博客户端下载地址Farmfit Fund由荷兰政府和一些国际品牌的投资支持。这些投资者共同将在投资方面采取最高风险职位，进入改善粮食安全和小农生计。然后，这些投资将从全球和地方金融机构解锁投资。
USAID, recognizing the role of smallholder farmers and the importance of catalysing commercial investment into this market segment, have provided a USD 250m second loss guarantee to the Farmfit Fund. This is the biggest guarantee ever provided by USAID and reflects their ongoing commitment to investing in food security and to improving the outcomes for smallholder farmers.
The IDH Farmfit Fund will be managed by IDH Investment Management’s global investment team and will complete IDH’s Farmfit offering, which includes IDH’s Farmfit Business Support. IDH Farmfit Business Support is a TA facility built by IDH with support of DFID and other funders. Building on 10 years of experience of IDH, this facility will provide businesses across the value chain with business analytics and advisory services to improve the sustainability and resilience of their smallholder farmers service delivery models.
Together the IDH Farmfit Fund and IDH Farmfit Business Support provide an integrated approach to catalyzing investment at scale into improving food security, making value chains more sustainable and improving the livelihoods of millions of smallholder farmers.
[1]http://www.fairtrade.org.uk/Farmers-and-Workers/Coffee
[2]Financial Inclusion Data, World Bank, 2017.
For additional information or interviews with key players, please contact:
