Finnfund’s Investment in Bhutan’s Sustainable Agriculture Strengthened by Carbon Sinks Program
Brussels, Belgium – 10 April 2025 – EDFI Management Company (EDFI MC) announced today its support through its Carbon Sinks program, an EFSD+ guarantee funded by the European Union, for Finnfund and their co-investor’s investment in Mountain Hazelnuts (MH), a pioneering sustainable agroforestry project in Bhutan. This investment will expand MH’s climate-resilient farming initiatives, ensuring the completion of climate adaptation grafting programs, factory expansions, and international certifications such as Rainforest Alliance and Organic.
Finnfund, along with their co-investor, Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable investment, invested $5.57 million in Mountain Hazelnuts, a social enterprise that partners with smallholder farmers in Bhutan to produce premium-quality hazelnuts for international export. Mirova also benefit from a Carbon Sinks guarantee cover through Finnfund. This investment is part of a larger $7.87 million funding round that includes equity from Mirova and bridge loans converting to equity. The project supports climate-resilient farming initiatives, empowers rural communities, and promotes sustainable agriculture practices.
Fadila Hamdane, Chief Partnerships & Development Officer at EDFI MC stated: “We are delighted to support Finnfund’s investment in Mountain Hazelnuts through our guarantee. This partnership reflects our shared commitment to sustainable development and our belief in the potential of innovative projects like Mountain Hazelnuts to drive positive change in emerging markets.”
The EFSD+ guarantee provided by EDFI MC through its Carbon Sinks program helps mitigate risks associated with investing in developing markets, enabling Finnfund to expand its portfolio of sustainable investments. This support is crucial for projects like Mountain Hazelnuts, which require long-term commitment and innovative financial solutions to achieve their full potential. The EFSD+ guarantee is part of the European Union’s broader strategy to enhance sustainable development and climate resilience in emerging markets. This is the first joint-EDFI guarantee transaction where EFSD+ guarantee cover is also provided to a DFI co-investor.
About EDFI Management Company:
EDFI MC is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. For more information, visit www.edfimc.eu.
EDFI Carbon Sinks is a joint guarantee programme designed by the members of the EDFI Association and EDFI MC under EFSD+, the financing arm of EU Global Gateway. The programme is designed to support European Development Finance Institutions (EDFIs) and their private and public co-investors to scale up equity investments in forestry and regenerative agribusiness companies investing in carbon sink projects. More information can be found here: https://edfimc.eu/what-we-do/edfi-carbon-sinks/
About Finnfund
Finnfund is a Finnish development financier and impact investor. We build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges. We invest 200–250 million euros in 20–30 companies in developing countries each year. Our focus sectors include renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions. Today Finnfund’s investments, commitments, and investment decisions total about 1.23 billion euros, half of them in Africa. The company has 97 employees based in Helsinki and Nairobi. For more information, please visit www.finnfund.fi.
