Agricultural commodities company receives $30 million investment from Blue Earth
Swiss impact investor Blue Earth Capital has provided a significant boost to the sustainable development of agriculture in Africa with a $30 million private credit loan to Valency International. Based in Singapore, Valency International is a global trader, processor, and exporter of agricultural commodities, including edible nuts such as cashews and sesame seeds, and agricultural inputs like agrochemicals and fertilizers.
The loan, designed as an impact-linked facility, aims to encourage Valency International to align with social and environmental impact goals. Blue Earth Capital's investment aligns with its mission to create a more equitable and sustainable future.
Valency International operates large-scale processing facilities across four countries in Africa and Asia. The funds from the loan will be used to buy agricultural commodities from smallholder farmers and local traders across Africa, thereby lowering the overall carbon footprint of the global cashew supply chain.
By financing firms that incorporate sustainability into their operations, Blue Earth Capital enables lower-carbon production practices. The loan to Valency International demonstrates how agricultural credit can play a role in decarbonizing global supply chains.
The investment in processing plants in Africa creates jobs for low-skilled populations and supports critical local processing capacity. This investment helps bolster agricultural value chains in Africa, encouraging the growth of sustainable agri-businesses, fostering rural development, and creating jobs in processing and logistics sectors, which is critical to the continent’s green economic transformation.
Stephen Marquardt, CEO of Blue Earth, believes impact can become a mainstream asset class. He stated, "Our investment in Valency International is a testament to our commitment to creating lasting social and environmental impact while delivering financial returns."
Blue Earth Capital has grown to $1.5 billion in assets under management. The company is owned by the Blue Earth Foundation, a Swiss-based non-profit that focuses on creating a more equitable and sustainable future.
Valency's investment in processing plants in Africa not only lowers the carbon footprint of the global cashew supply chain but also addresses chronic food insecurity in the region. The distribution of agrochemicals and fertilizers by Valency International helps ease food insecurity, contributing to the sustainable development of agriculture in Africa.
In summary, Blue Earth Capital's impact investing through this loan enhances agricultural sustainability by promoting local processing to reduce transport emissions, supporting adoption of low-carbon methods, and strengthening African agri-commodity chains that contribute to global food security and emission reductions.
As Blue Earth Capital continues to invest in firms that prioritize sustainability, they are actively working towards financial inclusion by supporting local African farmers and traders while lowering carbon emissions in the global biodiversity-rich cashew supply chain. This blended finance strategy by Blue Earth Capital demonstrates a commitment to creating a more equitable and sustainable future, bolstering rural development and fostering job creation in processing and logistics sectors.
