LATAM Blended Finance Note

In Summary   

This transaction offers diversified Latin American private credit exposure with enhanced downside protection through a 25% SIDA first-loss guarantee, resulting in a near-investment-grade risk profile.

The Fund - Finance in Motion has advised the USD 700M+ blended finance vehicle "Eco.Business Fund" -  a classified under SFDR Article 9 and focused on financing biodiversity-positive business practices - since 2014.

The Mandate - The Fund provides lending to financial institutions, non-bank financial institutions (NBFIs) and corporates across Latin America, supporting sustainable agriculture, forestry, aquaculture, and tourism. 

The Opportunity  - With the Fund currently operating at full lending capacity, this SPV aggregates eight newly originated loans into a USD 100M note while maintaining the Fund’s underwriting standards and biodiversity-linked eligibility criteria.

The Value Proposition - A 5 yr amortising senior Note linked to a portfolio of 8-10 LATAM Banks/ Financial Institutions/ Non-bank Financial Institutions at highest possible impact standards, and with a first-loss guarantee from SIDA.