Convergence awards proof-of-concept grant to Mekong Capital - Press Release - Convergence News | Convergence
Summary
MERF is a USD 200 million blended finance vehicle that will provide growth-stage private equity funding focused on regenerative agriculture and sustainable land use business models in the Lower Mekong region. Meanwhile, private investments in the local sustainable agriculture and forestry sectors remain low and mainly take the form of debt, which is unsuitable for many businesses looking for patient long-term equity financing to support them in adopting more sustainable agricultural practices.This initiative seeks to leverage Mekong Capitals significant experience to address the gap of undersupplied equity funding in the region and support the expansion of impactful agri-businesses. In addition, MERF intends to provide hands-on support to investee companies through a complementary technical assistance facility that will help expand the operational capacity and impact for these companies.MERF aims to cultivate a thriving, biodiverse ecosystem in the Lower Mekong region focusing on Cambodia, Laos, and Vietnam through sustainable land use, nature-based solutions, and regenerative farming practices. By leveraging blended capital to help private companies scale regenerative practices that replenish our natural assets and improve the lives of our farmers, MERF seeks to demonstrate that sustainable financial return and impact can co-exist. Through our grant, Mekong Capital, a mainstream private equity fund manager, will strive to enter the climate finance space for the first time.The ACS Design Grant targets critical climate mitigation and adaptation sectors in Asia including nature-based solutions, clean energy transition, and sustainable cities and infrastructure.