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Impact fund agRIF hits first close at $71m

Africa Global Funds
June 22, 2015, midnight
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Word count: 513

Incofin Investment Management has reached a first closing of the agricultural Rural Impulse Fund (agRIF) at $71m to invest in financial intermediaries in emerging economies (Africa, Asia, LAC Region, CEE-NIS).

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Incofin Investment Management has reached a first closing of the agricultural Rural Impulse Fund (agRIF) at $71m to invest in financial intermediaries in emerging economies (Africa, Asia, LAC Region, CEE-NIS).

Loïc De Cannière, CEO of Incofin IM, said that agRIF will invest in financial institutions in order to support and accelerate their growth and the expansion of their agricultural and/or rural portfolio.

“The expected outcome of the Fund’s investments, is the building of stronger, more resilient and more profitable financial institutions and the access to adapted financial services for substantially larger numbers of actors in the agricultural value chain, especially MSMEs,” he said.

De Cannière is convinced that the new fund, based on 15 years of experience in rural finance, will contribute value at all levels: investors, investees, clients and agricultural value chain operators.

“We have demonstrated in the past that we always translated our funds’ ambitions into reality. We are happy to observe that top notch investors acknowledge our leadership in this are,” he added.

Investors in the fund include the European Investment Bank (Luxembourg), Proparco (France), BIO (Belgium), SIFEM (Switzerland), Volksvermogen (Belgium), ACV-CSC Metea (Belgium), KBC Bank (Belgium), Bank für Kirche und Caritas (Germany), VDK Spaarbank (Belgium) and Incofin IM (Belgium).

Claude Périou, CEO of Proparco, said: “We are very pleased to continue supporting Incofin in the development of rural and agriculture focused funds.”

“agRIF will be the second fund of Incofin with this investment strategy that we finance after the successful experience of Rural Impulse Fund II. The fund is poised to generate or maintain more than 6,000 jobs either through direct investments in producer organizations and agriculture SMEs or through indirect investments in microfinance institutions,” he said.

“The approach of agRIF matches completely our own strategy, that emphasizes responsible microfinance, strengthening of rural value chains and a combination of debt, equity and technical assistance in favor of our investees,” added Périou.

agRIF, a Dutch investment vehicle, is a 10 year closed-ended mixed fund, that will make equity and debt investments.

The average ticket size of the investments will be between $5-10m.

Claude Barras, Obviam CEO, said: “As the majority of the world’s poor live in rural areas and access to finance is recognized as one of the major challenges faces by rural entrepreneurs at the Base-of-the-Pyramid, agRIF presents a compelling impact opportunity to reach the rural poor with viable financial products.”

The fund will substantially expand its size in subsequent closings until December 2016.

Numerous expressions of interest have been received already.

Michael Hepers, Director Treasury and Portfolio Management at Bank für Kirche und Caritas, added: “We appreciate the good and trustful cooperation with Incofin IM and the possibility to be involved as from first close.”

“Within the framework of our sustainable investment policy, “microfinance” becomes an increasingly important asset class. Thanks to agRIF’s focus on agri-focused institutions, we are well positioned to successfully implement our investment strategy,” he added.

Headquartered in Belgium, Incofin Investment Management manages impact investment funds with $600m in assets under management.

Its flagship funds include Rural Impulse Fund I (2007) and Rural Impulse Fund II (2010), which reach out to 3.8 million clients, 68% of which are located in rural areas.

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