Rabo Rural Fund and Caspian joins forces to support sustainable agribusinesses SMEs in India

Rabo Rural Fund (“RRF”) and Caspian Impact Investments (“CII”) entered into a partnership to support the growth of India based sustainable agribusinesses. The aim is to improve the livelihoods of small-scale farmers, as well as enhancing sustainable economic development in a socially responsible manner. As a part of the partnership, RRF will provide partial guarantee cover for the loans that CII makes to sustainable agribusinesses in India. Besides the financial resources RRF will also dedicate knowledge and her network. Coverage of the news can be seen here.

RRF is affiliated to the Rabobank Group and supports agribusiness cooperatives and small and medium-sized enterprises (SMEs) in developing countries across the world. Caspian Impact Investments is the third social impact fund raised and managed by Caspian Impact Investment Adviser Private Limited (“Caspian”).  CII hopes to leverage RRF’s worldwide experience in agribusiness lending to promote better models of agri-finance in India and support the growth sustainable agribusinesses focussed on  both the domestic and export markets.

Talking about the partnership, Pierre Van Hedel, Director – Rabo Rural Fund, said “Because of the established warm relationship between Caspian and Rabobank India and their shared network in local communities, Rabo Rural Fund will be able to reach out to smallholder farmers in India in a sustainable manner!”

Viswanatha Prasad, Managing Director, Caspian said “This partnership with Rabo Rural Fund expands on the existing relationship Caspian has with the Rabo Bank Foundation. This facility will now allow privately owned small businesses to access the much needed working capital from our Fund. Food and Agri based small businesses are showing tremendous potential and we at Caspian are excited by the opportunity this partnership brings. Rabo Bank’s experience and expertise in the food and Agri sector will be a big strength for Caspian in expanding its Sustainable Agri business portfolio.”

RRF and CII have a shared mission of supporting sustainable social, ecological and economical agribusinesses that promote improved practices for the benefit of small producers. This partnership will enable Caspian to deepen its presence in the food & agriculture sector India and also provide additional support & linkages to CII portfolio companies. Under the partnership, Caspian will recommend eligible sustainable agribusinesses SMEs to RRF using its own internal due diligence standards and will also provide subsequent portfolio monitoring and surveillance support to RRF on the underlying SMEs. As of June, the Caspian has funded 10 Agri SMEs and Producer companies across the Agri value chain.

About Caspian

Caspian is an investment advisory firm that invests capital in socially responsible, multiple bottom line businesses delivering financial and social value. CII is the third fund managed by Caspian and is supported by equity from international impact investors and development finance institutions such as Gray Ghost Microfinance Fund, Triodos Bank and FMO. Recently, CII raised long term debt finance through OPIC (USA). Caspian also manages Bellwether Microfinance Fund (“Bellwether”) and India Financial Inclusion Fund (“IFIF”).

About Rabo Rural Fund

The Rabo Rural Fund is affiliated to the Rabobank Group, a Dutch based cooperative financial services provider. The Rabo Rural Fund aims to support small agricultural producers by providing finance to agribusiness cooperatives and small and medium enterprises (SMEs) in developing countries. Rabo Rural Fund’s main shareholders are Rabobank Foundation and Cordaid. The Dutch Ministry of Foreign Affairs granted a subsidy at the start of the fund.