Madrid, December 01, 2022. The Huruma Fund, managed by GAWA Capital, and financed by the European Union, FONPRODE, COFIDES and private investors and savers, has completed its first investment in Brazil.
The fund has granted a loan of 12 million euros to the financial institution Central Cresol Baser. With this investment, Huruma will help increase financing in the Brazilian agricultural sector by supporting the third largest cooperative group in the country.
The investment will be devoted to promoting growth of Cresol Baser’s agriculture portfolio with the expectation of creating jobs that will indirectly benefit over 7,500 families in Brazil. Over the life of the investment, the fund will aim for two specific objectives for the bank: to launch green products and to develop a formal system for measuring social impact that enables monitoring customer progress. Likewise, the fund intends to develop a technical assistance project with the entity to improve training and adaptation to climate change of its farming customers, developing new methods to implement best practices.
Cresol Baser was created in 1996 in the state of Paraná with the objective of offering loans and financial and non-financial services to smallholder farmers. Since then, the Cooperative has achieved social impact in the region, currently serving over 23,500 farmers with financial products fully adapted to their production cycles. Furthermore, it provides customers with training focused on technology, strategy and financial tools, to better manage their businesses.
In addition to the loan, the Huruma Fund intends to provide Technical Assistance resources to strengthen the production capability of the farmers and MSMEs in the agricultural value chain. With this project, the Cooperative aims to identify the main climate threats facing farmers, to assess related risks and prepare plans of action for adaptation.
The Transformation Manager at GAWA Capital, José García, says that the alliance with one of the main credit cooperatives in Brazil will help support family farmers in that country, providing them with the necessary working capital and fixed assets for professionalization.
The Chairperson of COFIDES, José Luis Curbelo, highlights that, "At COFIDES we highly appreciate that the Huruma Fund supports the Brazilian primary sector with financing instruments targeting specialized cooperatives with proven experience which contribute to the maintenance of jobs for thousands of families. Accordingly, Central Cresol Baser is a new key partner in the development and growth of the Huruma Fund in Latin America".
ABOUT THE HURUMA FUND
The Huruma Fund is the first project led by COFIDES within the framework of agriculture blending facilities in the European Union. Managed by GAWA Capital, it has 120 million euros contributed by the European Union, FONPRODE (the Development Promotion Fund) of the Spanish Agency for International Development Cooperation (AECID), COFIDES and private investors, thanks to the collaboration of CaixaBank Private Banking, which has distributed the fund through its national network. The objective is to provide access to loans to farmers in underserved rural areas in Latin America, the Caribbean, Sub-Saharan Africa and Asia. It includes an EU funded Technical Assistance Facility (TAF) to provide consulting services and training related to agriculture, and to help improve the entities the Fund invests in, enhancing the impact on excluded rural populations.
ABOUT GAWA CAPITAL
Established in 2010, GAWA Capital is the leading firm in impact investing in Spain, having mobilised over 204 million euros in public and private investments. Its objective is to improve the lives of low-income communities by promoting investing in social enterprises, while providing their investors with a financial return. GAWA was a pioneer in the introduction of impact investing in Spain, launching three funds which invest in emerging countries with an inclusive approach to market solutions for social issues.
COFIDES, a State-owned company engaging in the management of State and third-party as well as its own funds, pursues a number of aims: internationalisation of Spain’s economy, furtherance of economic development and fortification of the solvency of companies affected by COVID-19. In addition to the Spanish State, its shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).
This press release was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.