FMO and TBD Lead $600 million Loan for African Agri Business

FMO - Dutch entrepreneurial development bank,  and the Trade and Development Bank Group - TDB Group have co-arranged a $600 million sustainability linked syndicated loan for ETC Group, up from an initial $394 million as additional investors joined. The facility supports the company’s working capital needs and its role in African agricultural value chains.

Participants include DEG, FinDev Canada, the The OPEC Fund for International Development, Proparco, FMO Investment Management, ILX Fund, the Asian Development Bank (ADB), CDP Cassa Depositi e Prestiti, Finnfund, Impact Fund Denmark and Austria’s OeEB Oesterreichische Entwicklungsbank AG - The Development Bank of Austria. The financing covers ETG’s operations mainly across Africa and, through ADB, in Asia. Interest margins are tied to agreed environmental and social performance targets.

ETG, founded in Kenya in 1967, operates in more than 50 countries and supplies agricultural inputs while linking smallholders to regional and global markets. The company seeks to reach one million African smallholder farmers with services that improve production, crop quality, traceability and climate resilience. The sustainability-linked structure is designed to incentivize progress on these targets.