Bank of America invests in Bamboo’s ABC Fund

Image Credit: Pixabay

Bank of America has agreed to make a commitment to the Agri-Business Capital Fund (or ABC Fund), marking the first investment in the blended finance fund by a global financial institution. The Bank is investing $5 million in the fund whose capital structure consists of three tranches offering different risk-return profiles and maturities. Bank of America becomes the first investor in the fund’s intermediate tranche (or B Shares), all previous investors having made commitments to the fund’s first loss tranche (or A shares) which act as a buffer to stimulate commercial investors.

“The Fund will help to address the impacts of climate change on rural farming as well as drive more innovation in the sector to help meet the United Nations Sustainable Development Goals,” said Dan Letendre, Bank of America’s Managing Director for ESG. “Through this investment, Bank of America is supporting higher rural employment and access to inclusive business opportunities, and a more sustainable agribusiness today and for the future.”

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