MICROCAPITAL BRIEF: Triodos Sustainable Trade Fund Opens $2m Credit Line for Thai Organic Rice Company Urmatt, Cocoa Producer ICAM Uganda

The Triodos Sustainable Trade Fund, which provides trade finance loans to co-operatives and private companies operating in “sustainable” agricultural value chains, recently opened a credit line for Urmatt Limited, a Thai company producing and processing certified organic rice, and ICAM Chocolate Uganda Limited, a subsidiary of the Italian firm Industria Cioccolato e Affini Morbegno (ICAM) that sources organically grown green cocoa beans directly from local farmers in Uganda. The funding, which is capped at USD 2 million [3], is intended to enable these two companies to pay “fair” prices to farmers and improve their cash flow management [1].

Michaël van den Berg, the manager of Triodos Sustainable Trade Fund, said: “Urmatt and ICAM Uganda are commendable additions to our growing Sustainable Trade Fund’s portfolio. As we continue to expand in Asia and Africa, we will aim to ensure a more sustainable livelihood for farmers, their families, and the community by paying fairly and upon delivery. We will continue to seek companies committed to boosting their regional economy through sustainable farming methods.” [1]

The Triodos Sustainable Trade Fund is managed by Triodos Investment Management, a unit of the Netherlands’ Triodos Bank. Triodos Investment Management manages funds on behalf of private and institutional investors, including deploying “socially responsible investments” into efforts such as microfinance institutions (MFIs) and sustainable energy projects. As of 2012, Triodos Investment Management manages 19 funds with assets totalling EUR 2.2 billion (USD 2.9 billion). In 2013, Triodos Sustainable Trade Fund made disbursements totalling EUR 24.5 million (USD 29.4 million) to 33 partners in 22 countries, including eight in Latin America and ten in Africa. [2] Triodos Bank has total assets of EUR 9,650 million (USD 11,400) [4].

By Julia Marín, Research Associate

About Triodos Sustainable Fund

The Triodos Sustainable Trade Fund is managed by Triodos Investment Management, a subsidiary of Netherlands-based Triodos Bank. Created in 2008, the fund provides trade finance loans to cooperatives and private companies operating in sustainable agricultural value chains, with a specific focus on organic agriculture and fair trade. As of 2013, its total assets amounted to EUR 12.8 million (USD 15.4 million), and it made disbursements totalling EUR 24.5 million (USD 28.9 million) to 33 partners in 22 countries, mostly in Latin America and Africa.

About Urmatt Limited

Urmatt Limited is a Thai company that produces and processes certified organic rice, as well as farming chia and coconut when rice is not in season. The goods are sold in the United States, Denmark and Germany. Financial data on the organisation is not available.

About ICAM Chocolate Uganda Limited

ICAM Chocolate Uganda Limited was founded in 2011, supported by a guarantee of USD 2.1 million from the World Bank’s Multilateral Investment Guarantee Agency (MIGA) to the firm’s parent company, Industria Cioccolato e Affini Morbegno (ICAM), which was founded in 1945 in Italy. The company sources organically grown green cocoa beans directly from local farmers in Uganda. Its guarantee from MIGA is valid for up to six years.

Sources and Additional Resources:

[1] Newsletter Triodos Emerging Markets, Connecting rice and cocoa farmers to world markets

[2] Triodos Sustainable Trade Fund, Annual Report 2013

[3] Information provided by Triodos Staff

[4] Triodos Bank, Key Figures

MicroCapital, May 13, 2013, Triodos Bank Launches Sustainable Pioneer, Sustainable Equity Retail Funds

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