The Tropical Landscapes Finance Facility offers long-term loans to projects and companies in Indonesia that stimulate green growth and rural jobs.
A partnership between ADM Capital/ADM Capital Foundation, BNP Paribas (“BNPP”), UN Environment (“UNEP”) and World Agroforestry Centre (“ICRAF”), the facility launched in October 2016 with support from government ministers and other Indonesian officials.
Consisting of a loan fund and a grant fund, TLFF will help Indonesia promote economic growth and at the same time contribute to the country’s climate targets under the Paris Agreement. The facility offers debt finance at scale to companies working in renewable energy and sustainable agriculture where outcomes can include improved livelihoods, reduced deforestation, better agricultural efficiency, restored lands and other objectives.
The TLFF lending platform is managed by ADM Capital/ADMCF while BNPP is structuring adviser and arranger of the Medium Term Note (“MTN”) program, which will securitize the loans and thus provide liquidity to the platform. The blended finance TLFF design also includes a Grant Fund, managed by UN Environment and ICRAF. This will provide technical assistance to projects, support pipeline development, and assist in monitoring and evaluation of the entire facility.
MTN Notes will be issued in individual tranches of varying sizes, with the objective of reaching at least US$ 1 billion, which is justified given the scale of the climate and rural development challenges Indonesia faces.