Impact Fund Denmark is investing DKK 191 million in Latin American Agribusiness Development Corp. (LAAD), which supports small and medium-sized agricultural enterprises in more than 17 countries in Latin America and the Caribbean to promote sustainable agribusiness. The investment is directed towards LAAD’s green lending efforts.
Agribusinesses are severely affected by climate change and its unpredictability, leaving farmers struggling to maintain and expand their production. At the same time, non-sustainable farming practices contribute to climate change: land use change, deforestation, and livestock farming are major sources of greenhouse gas emissions in the region.
The urgency is clear: farmers need financing and support to sustainable farming and to adopt climate-smart practices – for the sake of the people and the planet.
Therefore, Impact Fund Denmark is providing a DKK 191 million (USD 30m) loan to Latin American Agribusiness Development Corp. (LAAD).
Jobs and food security across the value chain
LAAD finances export-oriented agribusiness projects – primarily small and medium-sized enterprises (SMEs) – throughout Latin America and the Caribbean. To this day, LAAD has provided loans across more than 17 countries in the region. Their core mission is to promote social, economic, and environmental development by supporting agribusinesses that foster rural development, job creation and food security.
This mission aligns strongly with Impact Fund Denmark’s commitment to contribute to building just and inclusive societies and green economies.
Obtaining USD 30 million in term funding from Impact Fund Denmark for the first time in LAAD’s history represents more than just additional capital — it reflects a shared commitment to the future of Latin America and the Caribbean. Impact Fund Denmark’s support for LAAD’s mission will enable us to help local agribusinesses grow in a manner that is profitable, responsible, and sustainable for generations to come.
Green loans to alleviate the funding gap
The entire loan from Impact Fund Denmark will be allocated to LAAD’s green lending efforts, helping local businesses adapt and adopt to climate-smart agriculture and supporting LAAD’s goal of allocating 35 per cent of its annual lending to green projects.
LAAD’s loans primarily support SMEs, helping close the funding gap in agriculture — and with Impact Fund Denmark’s loan, they can extend critical financing to even more small businesses. The loan will also enhance job security and indirectly support job creation as well as revenues, as farmers will expand their operations.
“This investment is a meaningful step toward strengthening climate-smart agriculture in Latin America. While the funding gap for micro, small, and medium-sized enterprises, especially in the emerging markets, is a global challenge, our partnership with LAAD allows us to make a tangible difference in a region where agribusiness plays a vital role in both livelihoods and environmental sustainability. The investment reinforces our commitment to achieving a net-zero portfolio while promoting just, inclusive – and green – societies.
Managing Director and Co-head of Sustainable Food Systems
Otto Vinther Christensen
+45 33 63 75 04
Investment Manager
Youssef Shelbaya
+45 33 44 12 68
