Impact initiative of the year – Latin America and Caribbean: SIM’s Responsible Commodities Facility

Environmental Finance

A zero-deforestation soy finance initiative managed by Sustainable Investment Management (SIM) has scooped the Impact initiative of the year – Latin America and Caribbean award, just months after it won the Green bond initiative of the year award in Environmental Finance‘s 2023 Bond Awards.

The first-of-its-kind $11 million Responsible Commodities Facility (RCF) Cerrado Programme was launched in July 2022 and provided finance to 32 farms in the Cerrado region of Brazil. Farms financed through the RCF will voluntarily commit to not clearing tracts of Cerrado land for cultivation that they are legally allowed to convert for soy production.

The low-interest loans to farmers were funded by US dollar-denominated green bonds – in the form of certificates of receivables from the agribusiness (CRAs), which are asset-backed securities considered fixed income instruments – and invested in by UK grocery firms Tesco, Sainsbury’s and Waitrose.

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