KfW: green light for the first biodiversity fund in Latin America

Frankfurt (ots) -

- EUR 17 million seed capital for investments in the preservation
of the biodiversity
- New structure enables the mobilisation of private and public
investors

KfW, the US non-governmental organisation Conservation
International (CI) and the German fund manager Finance in Motion
together founded the eco.business fund. The fund enables companies
and cooperatives to make investments in Latin America that contribute
towards preserving biodiversity and the sustainable use of natural
resources - for example, in agriculture, forestry and fishing, as
well as in eco-tourism.

The Federal Ministry for Economic Cooperation and Development
(BMZ) provides seed capital of EUR 17 million that KfW incorporates
in the fund. CI together with Finance in Motion will also invest in
the fund at the start of 2015. The eco.business fund is launched as a
public-private partnership (PPP) and allows the various investors to
invest in capital tranches with a diversified risk-return profile.
With this structure, public as well as private funds can be mobilised
for protecting biodiversity.

"Latin America is one of the regions with the most abundant wealth
of biodiversity. However, these valuable resources are seriously
threatened by human activities. Linking the preservation of
biodiversity with an economic approach is new territory for Latin
America and the right approach in view of the great challenge and
considerable financial requirement", commented Dr Norbert
Kloppenburg, Member of the Executive Board of KfW Group.

These companies are funded either directly through the fund or
with the help of financial intermediaries.

"The continent finds itself in a prolonged phase of economic
growth and stability. One of the roles of the eco.business fund is to
strengthen the role of local financial intermediaries in promoting
environmentally-friendly manufacturing processes. In the long term,
the application of such methods will be essential for securing
sustainable economic growth and prosperity", explained Sylvia
Wisniwski, Managing Director of Finance in Motion.

"Conservation International (CI) has long been committed to
supporting environmentally responsible businesses that provide jobs
and help secure human well-being," said Jennifer Morris, chief
operating officer of Conservation International. "eco.business builds
on this experience. Targeting small and medium-sized businesses that
deliver environmental, socioeconomic and financial benefits is vital
to the reduction of poverty and development of healthy, sustainable
communities."

Besides the fund, a development facility is also created, which
will provide specialist support to the financial intermediaries and
their customers. This should secure the sustainable implementation of
the fund's investment. The Federal Ministry for Economic Cooperation
and Development plans up to EUR 3 million for this purpose. Both the
fund as well as the development facility are open to further
investors to participate in the development policy direction of "eco
business".

Further information about the fund is available under
www.finance-in-motion.de
www.conservation.org

Contact:
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM) Dr. Charis Pöthig
Tel. +49 (0)69 7431 4683, Fax: +49 (0)69 7431 3266,
E-Mail: presse@kfw.de, Internet: www.kfw.de