The Africa Sustainable Forestry Fund I, managed by Global Environment Fund, together with the Grantham Foundation for the Protection of the Environment, have acquired a significant minority position in Compagnie des Bois du Gabon (CBG).

CBG is a vertically-integrated tropical forest harvesting and wood processing company that manages a contiguous forest concession of 568,543 hectares near the southern coast of Gabon.

CBG is headquartered in Port Gentil and operates one of the largest forestry concessions in Gabon and produces products that are Forest Stewardship Council Certified (FSC).

The company currently harvests approximately 130,000 m3 per year mixed tropical hardwood species such as okoumé, azobe and gombe.

George McPherson, Managing Director, Global Environment Fund, said: "We believe this company is one of the most well run natural forest plantations in the world.

The company sells FSC certified tropical hardwood products to customers throughout Europe where demand remains strong."

"As a result we believe there is sustained revenue and EBITDA growth potential for the foreseeable future. Finally, the company operates with very high Environmental, Social and Corporate Governance (ESG) standards," he said.

"The investment team has a number of attractive investments in its pipeline however, we will not be making any future investments in natural forest assets," he added.

McPherson told Africa Global Funds that this is the final investment for the $160m Africa Sustainable Forestry Fund I as it is fully invested.

"We are currently in the process of raising the Africa Sustainable Forestry Fund II which will be similar in size," he said.

Global Environment Fund is a global alternative asset manager with approximately $1bn in assets under management.

Established in 1990, GEF has grown into one of the world’s most successful investment firms dedicated to the energy, environmental, and natural resources sectors.

The Grantham Foundation, a private foundation established in 1997, seeks to raise awareness of urgent environmental issues and supports individuals and organizations working to find solutions.