Mirova plans €350mn fund for sustainable land management, deploys remaining LDN funds

Sustainable finance asset manager Mirova has launched a EUR 350mn fund dedicated to sustainable land management. The fund, Mirova Sustainable Land Fund 2 (MSLF2), is its second strategy that will invest in agroforestry, sustainable forestry and regenerative agricultural projects in developing countries.

MSLF2 will be structured as a blended finance vehicle that combines public and private capital and will operate mainly through debt financing to support the transition and decarbonisation of agricultural and forestry value chains.

The asset management firm has also completed the deployment of its Land Degradation Neutrality Fund having made three final investments, which include—a USD 9.3mn investment in Koa, a Swiss-Ghanaian B Corp certified company and a USD 8.5mn investment in Pamoja, a sustainable macadamia nut production company in Kenya and Tanzania.

The Land Degradation Neutrality Fund raised USD 208mn from public institutions and private investors. It has invested in thirteen sustainable land management projects in Africa, Asia and Latin America across coffee, cocoa, wood, nuts and fresh fruit.