The Althelia Biodiversity Fund and the SITAWI Collective Loan Platform, members of the Partners for the Amazon Platform (PPA), won the Impact Awards 2020, promoted by the specialized channel Environmental Finance. They were awarded, respectively, in the Funds of the Year-Multi-asset and Impact of the Year for Latin America and the Caribbean categories.
In its first edition, the award seeks to recognize and reward the work of impact investors and to highlight best practices in all asset classes worldwide. In total there were 42 categories, with winners chosen by a panel of 12 judges based on information from April 1, 2019 to May 31, 2020.
“I would like to congratulate Althelia and SITAWI for the Impact Awards. We are very proud and honored to have supported the initiatives, and it is very significant that they are proposals aimed at the Amazon and demonstrate the excellent work that has been done, ”said Anna Tonnes, director of environment at USAID.
Launched in 2019, Althelia Biodiversity Fund Brazil (ABF) is a private commercial impact investment fund managed by Mirova Natural Capital, under the Althelia Funds brand, and managed by Brazilian manager Vox Capital. ABF is registered as an Investment and Participation Fund (FIP), valid for 11 years and expected to raise US$ 100 million (R$ 400 million) in the period. The fund managers have already structured 3 businesses and another 10 are under development.
It was designed jointly with USAID / Brazil, Alliance Bioversity-CIAT and other PPA partners. During the co-design, USAID made recommendations for impact, governance, social and environmental policies, and used the mechanism Development Credit Authority (DCA) to reduce financial risks by offering ABF a loan guarantee of 50% from its portfolio against losses. The International Center for Tropical Agriculture (CIAT) was the initial investor, with US$ 15 million.
It seeks to overcome financial challenges faced by startups in the Amazon, offering long-term capital and financing sustainable businesses with a positive and transforming impact on biodiversity and communities in the region. Letters of intent from ABF were delivered to startups that were or are being accelerated in the PPA Acceleration Program.
Innovative platform - SITAWI's Collective Loan platform, winner in the Impact Initiative category, has so far made 12 fundraising projects, which have mobilized R$ 5.6 million for projects with a positive socio-environmental impact. The initiative aims to stimulate private capital investments in organizations aligned with the United Nations (UN) Sustainable Development Goals (SDGs).
It combines collective loans from individual retail investors with more traditional ones from larger co-investors. Considered a pioneering initiative in Brazil, the platform allows individual investments from R$ 1,000.
The Collective Loan had three investment rounds, with 273 investors. The second round, held in early 2020, focused on projects under the PPA Acceleration Program. The Partnership also invested in the round, with support from USAID / Brazil and Humanize. 3.3 million R$ were mobilized for sustainable businesses in the Amazon that generate income for indigenous, quilombola and riverside communities.