September 12, 2018
New forestry fund projected to sequester 20 million metric tons of CO2
Finnish development financier Finnfund has committed 10 million USD to a new impact fund for sustainable forestry, the Arbaro Fund (Arbaro).
Arbaro is projected to sequester over 20 million metric tons of CO2 in its lifetime and create more than 5,000 jobs in remote areas. Arbaro aims to invest in and actively manage a well-diversified portfolio of up to 12 sustainable forestry projects in Latin America and Sub-Saharan Africa – regions which are currently characterized by high deforestation rates and an increasing demand for wood resources.
Sustainable forestry is one of Finnfund’s focus sectors because of its high impact on the climate, environment and jobs. Finnfund has invested in ten forestry companies and funds primarily in Africa.
“Sustainable forestry has long been one of Finnfund’s key sectors because the world needs to step up its efforts to fight deforestation and climate change. We expect the Arbaro Fund to play an important role in this vital effort,” commented Finnfund CEO Jaakko Kangasniemi.
Arbaro was established by the global impact asset manager Finance in Motion together with timber sector advisory company Unique. Finnfund brings to the fund its expertise in sustainable forestry. One of the fund’s cornerstone investors is the European Investment Bank (EIB).
The fund marked its initial closing at USD 60.2 million in July 2018, with a target of USD 200 million. Arbaro also aims at solid financial returns, thanks to its target regions’ optimal biophysical growth conditions and high local timber demand.
For more information, please contact:
Kirsi Pere, Communications Manager, kirsi.pere(a)finnfund.fi, phone: +358 40 620 9767
Finnfund is a Finnish development financier and professional impact investor. We build a sustainable world by investing in responsible and profitable businesses in the developing countries. Each year we invest 150–200 million euros in 20-30 projects, emphasising renewable energy, sustainable forestry, sustainable agriculture and financial institutions. Today Finnfund’s investments and commitments total about 700 million euros, half of them in Africa. The company has 80 employees. For more information, please visit www.finnfund.fi