DFCD shows innovative solution for businesses in high climate risk areas
Ho Chi Minh City, Vietnam, 21 March, 2024 – In a groundbreaking move that sets a new precedent for sustainable investment in climate-vulnerable regions, the Dutch Fund for Climate and Development (DFCD), represented by SNV and the Dutch entrepreneurial development bank (FMO), and Camimex Group Joint Stock Company (Camimex), is delighted to announce the intention to launch a strategic investment that aims to support sustainable aquaculture in Vietnam's Mekong Delta. This significant commitment, (a planned senior secured loan of USD 15 million from FMO to Camimex), would mark the first investment in a company that has been de-risked through the DFCD's innovative origination approach. The announcement coincides with the Dutch trade mission to Vietnam, highlighting the international importance of this initiative.
Camimex Group Joint Stock Company: 'This pivotal proposed investment from FMO, facilitated by the innovative support of the DFCD, will be a milestone in our quest to blend business success with environmental stewardship,' expressed Mr Dang Ngoc Son, General Director of Camimex. 'Our journey with the DFCD, from origination support by SNV to a proposed investment by FMO, has been transformative. It has allowed us to pioneer practices that not only enhance the resilience of our operations against climate change but also ensure the sustainability of the ecosystems we depend on. We are setting new standards for the industry, proving that profitability and ecological responsibility can go hand in hand.'
Dutch Entrepreneurial Development Bank (FMO): At FMO, we are driven by a mission to empower entrepreneurs to build a better world, and our proposed investment in Camimex embodies that mission perfectly,' said Huib-Jan de Ruijter, Co-Chief Investment Officer at FMO. 'Through DFCD, we are pioneering a model that leverages finance as a catalyst for sustainable development in areas most threatened by climate change. This approach not only mitigates risk but also opens up new avenues for businesses that can thrive in harmony with their environments. We look forward to realising this innovative investment, contributing to a sustainable future for the Mekong Delta and beyond.'
SNV: Simon O’Connell, Chief Executive Officer at SNV, highlighted the DFCD's crucial role in catalysing investment through innovative financial mechanisms that benefit businesses and smallholder farmers in climate-vulnerable regions. 'Our partnership with Camimex, bolstered by the DFCD's support, demonstrates the effectiveness of collaborative efforts to de-risk business propositions in climate adaptation and resilience. Focused on areas like the Mekong Delta, this approach not only advances Camimex but also sets a global benchmark. It underscores the tangible benefits of investing in climate resilience, serving as a model of hope and a guide for future initiatives.'
Once executed this proposed investment would be a landmark achievement for the DFCD, SNV, FMO, and Camimex, showcasing the power of collaborative efforts in driving sustainable business practices in areas vulnerable to climate change. It underscores a shared commitment to finding innovative solutions that ensure economic viability while protecting and restoring the natural world.
About Camimex Group Joint Stock Company
A leader in Vietnam's organic shrimp industry, Camimex is committed to sustainable and responsible aquaculture practices, promoting biodiversity and supporting the livelihoods of smallholder farmers in the Mekong Delta since 1977.
About the Dutch Fund for Climate and Development (DFCD)
The DFCD is a consortium of FMO, Climate Fund Managers (CFM), Worldwide Fund for Nature Netherlands (WWF) and SNV) managing a fund for scalable climate solutions. The fund managed on behalf of the Dutch Ministry of Foreign Affairs, enables investments in projects aimed at climate adaptation and mitigation in developing countries.
About the Dutch Entrepreneurial Development Bank (FMO)
FMO is the Dutch development bank that invests in over 85 countries, supporting businesses and projects that aim to improve livelihoods, enhance sustainability, and tackle climate change.
About SNV
SNV is a global development partner with a mission to strengthen capacities and catalyse partnerships in the countries we are rooted in. By doing so, we aim to transform the agri-food, energy, and water systems to enable sustainable and more equitable lives for all.
For further inquiries, please contact:
FMO | Monica Beek | +31 6 46637868 | m.beek@fmo.nl
SNV | Zala Zbogar | +31 6 42 76 36 09 | zzbogar@snv.org