IDB Invest, a member of the IDB Group, has provided a loan with blended finance resources from the Global Environment Facility (GEF) Climate-Smart Agriculture Fund, of up to $3.1 million to Agrocacay, S.A.S. (Agrocacay), to plant and maintain more than 100,000 cacay trees, a native tree of the Colombian Orinoquía. Kahai S.A.S. acts as guarantor of this operation. The financing structure is adapted to the time it takes for the cacay trees to start producing. The deal will support the development of the cacay nut industry and its derivative products.
The deal has a tenor of up to 12 years and will allow Agrocacay to continue growing its operations, ensuring a reliable source of raw material for Kahai, a company within the group that processes walnuts into end products and derived products for commercialization. The cacay fruit is a type of nut with a high protein content, which can be consumed as a snack between meals, or processed into flour and oil that have nutritional benefits, as a dietary supplement, and cosmetic benefits.
With this project, it is expected to reforest more than 400 hectares of land, as well as to promote adaptation and mitigation to climate change, through the reforestation of degraded lands with a native tree, and expecting to capture 62,250 tons of CO2e during the life of the plantations.
This deal potentially contributes to eight United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), Reduced Inequalities (SDG 10), Responsible Consumption and Production (SDG 12), Climate Action (SDG 13) and Life on Land (SDG 15) and Partnerships for the Goals (SDG 17).
IDB Invest will support Agrocacay with an analysis of social and environmental risks, as well as the design of an action plan that will be monitored for the duration of the project.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Agrocacay, S.A.S.
Agrocacay is the subsidiary of the company Kahai SAS, dedicated the sustainable development of Cacay crops to guarantee its own supply of the nut.
About Grupo Kahai, S.A.S.
Kahai is the first company in the world to industrialize Cacay, an Amazonian tree that produces very good tasting nuts for confectionery use, from which cosmetic oil and flour of high nutritional value are extracted. Its mission is to establish Cacay as an alternative for sustainable economic development for Colombia. Kahai promotes the cultivation of Cacay by linking more than 500 families living in rural areas in its supply chain.