FMO has approved the commitment of $10m in senior shares of Eco.business II Sub-Fund (EBF II), an open ended debt fund managed by Finance-In-Motion.

EBF II aims to promote ecologically sustainable businesses, with a special focus on fighting deforestation in Sub-Saharan Africa, through the provision of dedicated financing and technical assistance.

The eco.business II Sub-Fund was initiated by Germany’s KfW Development Bank with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ).

The investment by FMO will be used on-lent to local financial institutions that target sustainable businesses/projects (i.e. certified or identified as green).

In addition, the Fund looks to set up strategic partnerships with commodity buyers to finance smallholders and also to finance high impact projects directly.

Priority sectors will be sustainable agriculture, fishery, forestry and tourism.

Based on the expected portfolio composition, the investment has been categorised as Category B, in accordance with FMO’s Sustainability Policy.

“FMO’s investment in EBF II will contribute to biodiversity conservation and sustainable use of natural resources, which is directly in line with SDG 13. Being one of the first investors, FMO’s stamp of approval is expected to attract additional investors to the Fund,” said FMO.

Finance in Motion is an impact asset manager exclusively focused on development finance.

With over €2bn in assets under management, the company develops and advises investment vehicles that promote the Sustainable Development Goals.