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Rabobank teams up with Indian impact investment firm

The partnership with Caspian Impact Investment is designed to improve the livelihoods of small-scale farmers and enhance sustainable economic development.

An Indian impact fund, Caspian Impact Investment (CII), has teamed up with Rabo Rural Fund (RRF) to support the growth of India-based sustainable agribusinesses.

The Rabo Rural Fund is part of the Rabobank Group and aims to support farming cooperatives and small- and medium-sized enterprises (SMEs) in developing countries. The Rabobank Foundation, Cordaid and the Dutch Ministry of Foreign Affairs contribute to financing the fund.

The partnership with CII is designed to improve the livelihoods of small-scale farmers, as well as enhancing sustainable economic development in a socially responsible manner, according to a statement.

RFF will provide partial guarantee cover for the loans that CII issues to Indian agribusinesses and will also bring  sector knowledge and its international network to the deal, Agri Investor learned.

Caspian, as the counterpart, will recommend eligible sustainable agri-businesses SMEs to RRF using its internal due diligence standards and will provide subsequent portfolio monitoring and surveillance support to RRF on the SMEs.

Launched in 2013, Caspian Impact Investments is the third fund managed by Caspian, an investment advisory firm based in India, and is supported by equity from international impact investors.

OPIC in April committed $20 million to CII. As of June, the fund has invested in four food and agri companies and 10 agri SMEs.