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Bank of America invests USD5m in the ABC Fund

The Agri-Business Capital Fund (ABC Fund) has received its first investment from a corporate global financial institution, with the Bank of America deploying USD5 million.

The ABC Fund is a blended-finance impact fund investing in smallholder farmers and small-to-medium sized rural agribusinesses in developing countries to support sustainable and inclusive agricultural value chains. Through its activities, the ABC Fund aims to improve the livelihoods of smallholder farmers with a particular focus on women and young people. 
 
The blended finance structure supports an investment from Bank of America at the intermediate tranche (B-shares). All previous investors invested in the first loss tranche (A-shares) which acts as a buffer to stimulate commercial investments. The capital structure of the fund is made of three tranches of different size, risk-return profile and maturity going from A to C-shares.
 
The Fund was initiated by the International Fund for Agricultural Development (IFAD) in partnership with, and is currently funded by investments from, the European Union, the Organization of African, Caribbean and Pacific States (OACPS), the Luxembourg Government and the Alliance for a Green Revolution in Africa (AGRA), and IFAD. The IFAD investment was made possible thanks to financial support from the Swiss Agency for Development and Cooperation (SDC).

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