Toronto, 30 November 2023 - Convergence awarded a feasibility study grant to AMPLO Impact Investing (Amplo) for the design of the ‘Blooming Roots Fund’, a USD 50 million closed-end, blended fund that aims to invest in for-profit nature-based solution (NbS) businesses in Latin America. This grant is awarded through Convergence’s Gender-Responsive Climate Finance Design Funding Window, funded by Global Affairs Canada.
Across Latin America, strong social and economic progress has been made over the past decades, yet the region continues to face development challenges that limit local ability to reach full natural potential. Effects of climate change have compounded the impacts of unsustainable livestock activities, extractive industries, and exponential urbanization.
Amplo is an impact investment management firm that works to empower rural communities and generate gender-inclusive economic opportunities by fostering the sustainable use of natural resources. To achieve this goal, the Blooming Roots Fund will employ a blended finance strategy that combines innovative and flexible financing and technical assistance. Amplo is supported by Grassroots Business Fund (GBF) in the design of the fund and both entities will jointly operate as the fund’s investment managers.
“The Blooming Roots Fund represents an opportunity for us to demonstrate to private investors that by employing innovative financial strategies and adopting a hands-on approach, we can achieve both financial returns and address crucial development challenges. It emphasizes the need to innovate through blended finance in the business sector expertise to extend capital into more difficult segments and geographies. Our commitment to this approach is crucial in delivering the advantages of a peaceful, equitable, democratic, and market-based society to all,” says David Sánchez, Managing Partner at AMPLO Impact Investing.
Convergence’s grant will support Amplo and GBF to assess the feasibility of the blended fund which is a scaled-up version of an initial pilot that both teams jointly conducted in Providencia and Santa Catalina islands in Colombia. The initial pilot was conducted in response to the socio-economic devastation caused by Hurricane Iota in 2020 and focused on the economic reactivation of local businesses. The team will improve on the investment strategy of the pilot and apply this strategy to invest in NbS-aligned sectors across Colombia, Peru, and Central America. Technical assistance for investees is a core part of the fund implementation. The team will combine the use of innovative financing instruments with technical assistance to generate gender-inclusive economic opportunities for rural communities, improve income opportunities for local community members in implementation geographies (50% expected to be women), encourage sustainable use of natural resources and restore a significant area of natural habitat.
“Amplo has demonstrated success in generating gender-inclusive economic opportunities that accelerate nature-based solutions,” says Joan Larrea, CEO at Convergence. “We’re excited to support this next phase of their work. The Blooming Roots Fund concept has the potential to greatly impact the livelihoods of rural communities and strengthen local sustainability across Latin America,” Ms. Larrea continued.
About AMPLO Impact Investing
AMPLO Impact Investing is a Colombian impact investment management firm that aims to mobilize capital towards sustainable businesses. It works with companies, development organizations and investors to structure, finance and implement profitable projects and investment vehicles that generate a positive social and environmental impact. To date, Amplo has provided investment readiness services to over 50 enterprises in NbS industries. It has strengthened value chains in the Colombian Amazon and Pacific regions and the Central American forest areas, allowing Amplo to overcome barriers to financing.
Please visit www.amplo.com.co to learn more.
About Convergence’s Design Funding Program
Convergence’s Design Funding program operates as a market acceleration tool providing early-stage capital to support blended finance solutions in frontier markets and nascent sectors to accelerate the number of investible transactions in market targeting SDGs. The Gender-Responsive Climate Finance Window, funded by the Government of Canada, provides grant funding for the design and launch of innovative blended finance solutions focused on the intersection of climate change and gender equality in emerging markets globally. Visit Convergence’s Design Funding page for information on submission deadlines as well as other open windows.
About Convergence
Convergence is the global network for blended finance. On top of market acceleration through its Design Funding program, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 160 public, private, and philanthropic investors as well as sponsors of transactions and funds.
Learn more about Convergence: www.convergence.finance
Media Contact
Karolyn Xie
Head of Communications (interim)
Convergence
[email protected]
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