Operational since its first closing at the end of 2018, the LDN Fund has finalised its first transaction, investing in a program to restore degraded land in Latin America through agroforestry practices. The Fund’s Strategic Board also held its first meeting.

The LDN Fund has selected Urapi Sustainable Land Use (Urapi), a programme focused on restoring degraded land and promoting sustainable land management in Latin America, for its first investment. Conceived by the project developer ECOTIERRA, Urapi aims to develop and implement agroforestry projects as well as to strengthen value chains through partnerships with cooperatives of small-scale producers. URAPI seeks to reverse land degradation and combat climate change by implementing sustainable agricultural practices and strengthening the economic models of cooperatives, while also promoting social inclusion. The first project developed, financed and implemented by Urapi involves four coffee cooperatives in Peru and aims to reforest nearly 9,000 hectares of degraded land into productive agroforestry systems, sequester and reduce CO2 emissions by 1.3 metric tons, and improve the livelihoods of 2,400 producers.

As the LDN Fund enters its operational phase, the Fund’s Strategic Board met for the first time on the 15th of January. The Board is chaired by Monique Barbut, Executive Secretary of the United Nations Convention to Combat Desertification, which promoted and spearheaded the design of the fund. Members of the committee include Patricia Espinosa, Executive Secretary of the United Nations Framework Convention on Climate Change, and Cristiana Paşca Palmer, Executive Secretary of the United Nations Convention on Biological Diversity. The purpose of the Board is to make recommendations on the Fund’s strategic direction and ensure its alignment with policies to fight land degradation and climate change.

The LDN Fund provides long-term financing as well as technical assistance to sustainable land management project developers in the agricultural and forestry sectors. The Dutch entity IDH has been chosen to manage the Fund’s Technical Assistance Facility.

The Technical Assistance Facility became fully operational on January 15 when Agence Française de Développement signed off on a first €3 million contribution. This Technical Assistance Facility will help to maximize the positive impacts of projects funded by the LDN Fund, to balance the project portfolio, and to implement a framework to measure the contribution of projects to reducing land degradation.

 The LDN Fund benefits from the resources of the Mirova Natural Capital platform The LDN Fund plans to make further investments in sustainable land management projects over the coming months, with a focus on Africa and Asia.

The Fund’s investors include public investors such as the European Investment Bank, l’Agence Française de Développement, and the Government of Luxembourg, as well as private investors such as Fondaction, the Fund’s first North American investor, Fondation de France, BNP Paribas Cardif, Garance, and Natixis Investment Managers. The team continues to raise funds to meet their goal of $300 million.

The LDN Fund aims to support the sustainable management of land, to reduce CO2 emissions by 35 million tons, and to create jobs or improve livelihoods for over 100,000 people through its investments.

Note to the reader:

The Land Degradation Neutrality Fund SLP 4 is a Luxembourg Special Limited Partnership not subject to the approval of the Luxembourg Luxembourg Commission for the Supervision of the Financial Sector (CSSF) and reserved for institutional clients only in accordance with MIFID. The Fund is currently authorized to be marketed in France, Luxembourg and Canada. The Fund’s investment objective, strategy and main risks are described in its regulatory documents. Its fees, charges and performances are also described in these documents. Investments in the Fund are mainly subject to loss of capital risk. This document is for information purposes only. This document is issued to provide initial, preliminary information about the Fund and is subject to further updating, completion, revision, verification and amendment without notice. This document does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever.

Recipients of this document who are considering investing in the Fund following the publication of the documentation of the Fund are reminded that any such purchase of subscription must be made only on the basis of the information contained in the documentation in its final form relating to the Fund, which may be different from the information contained in this document. No reliance may be placed for any purpose whatsoever on the information or opinion contained in this document or on its completeness, accuracy or fairness.

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About Mirova Natural Capital Limited
Mirova Natural Capital is an experienced and recognised asset manager with an impact-driven approach to investment, aligning strong financial returns with measurable environmental and social impact. Further to its acquisition by Mirova the platform has ambition to become the leading global natural capital fund manager.

Mirova Natural Capital Limited
UK Private Limited Company
Company registration number: 07740692
Regulated by FCA
Registered office: 12 Gough Square London EC4A 3DW

Affiliate of Natixis Invesment Managers
Mirova is a subsidiary of Natixis Investment Managers International
French Public Limited liability company with board of Directors
Share capital : €8 322 490
RCS Paris : 394 648 216 738
59 avenue Pierre Mendès France

Natixis Investment Managers International
French Public Limited liability company with board of Directors (Société Anonyme)
Share capital : €51 371 060,28   
RCS Paris : 329 450 738 
Regulated by the Autorité des Marchés Financiers (AMF) under no. GP 90-009.
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Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France, 75013 Paris

This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.