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21 Nov

Arbaro Fund breaks ground with first investment in sustainable forestry in West Africa


USD 20 million investment in Miro Forestry contributes to sequestering 5 million metric tons of CO2 and creating 2,000 jobs

Frankfurt and Agogo, November 21, 2018 – The Arbaro Fund (Arbaro) has announced its first investment today. On November 19, 2018, the sustainable forestry fund signed an equity agreement for USD 20 million with West African forestry company Miro Forestry (Miro) to expand young plantations in Ghana and Sierra Leone. The investment aims to close the existing gap between demand for quality timber and a sustainable supply, combating deforestation while sequestering CO2 and promoting economic development and job creation in the region.

Miro develops FSC-certified forestry plantations in Ghana and Sierra Leone to meet high demand for industrial roundwood on the domestic and regional markets. By supplying these fast-growing economies with sustainable timber, Miro seeks to fill supply shortages that would otherwise result in the exploitation of natural forests. The investment will help Miro expand young plantations to a commercially viable scale, planting around 3,000 hectares of new trees each year over the course of the six to ten-year project. This addition to the already existing 10,000 hectares is expected to result not only in reduced pressure on natural forests, but also in the sequestration of 5 million metric tons of CO2 and the addition of 2,000 local jobs.
“Miro is an ideal partner for the Arbaro Fund,” said Marco Kaiser, Managing Director of Arbaro Advisors GmbH, the investment advisor of the fund. “The company’s highly diversified portfolio, experienced management, proven track record, and strong local network all make it optimally equipped to help us pursue our mission of generating positive social and environmental impact through attractive investments in sustainable forestry.”

“We are delighted to welcome Arbaro Fund as a shareholder in Miro alongside our other institutions and individuals”, said Andrew Collins, CEO of Miro. “We believe Arbaro Fund will bring added value to Miro beyond monetary investment, given their rounded expertise in the forestry, timber products and financial sector. We very much look forward to the next five years as we build revenue and develop into a full vertically integrated timber products business.”

The advanced greenfield project currently sees an investment horizon of six to ten years. All plantations are certified by the Forest Stewardship Council.

About Arbaro Fund, SLP

Arbaro is a Luxembourg-based private equity fund managed by FiM Asset Managment S.á r.l. The fund’s investment advisor is Arbaro Advisors GmbH, an investment advisory company jointly established by Finance in Motion – a leading impact asset manager, and the UNIQUE Group – a leading forest consulting and forest management firm. Arbaro invests in sustainable forestry projects in Latin America, the Caribbean, and Sub-Saharan Africa, in countries where biophysical growth conditions for forests are ideal. By establishing a renewable resource through sustainably managed and FSC-certified forest plantations, Arbaro provides significant mitigation and adaptation benefits in its target countries. Over its lifetime, Arbaro aims to sequester 20 million tons of CO2. Operating in rural areas, Arbaro will contribute to social development through job creation as well as knowledge and skills development. By supporting the development of the sustainable forestry sector in its target countries, Arbaro contributes to overall economic development while earning positive returns for its investors.

Arbaro is supported by the European Investment Bank as anchor investor, the Finnish Fund for Industrial Cooperation as an experienced forestry investor, and private-sector investors including fair-finance Vorsorgekasse, GLS Treuhand, and Girteka Logistics.

For more information, visit www.arbaro-advisors.com

About Miro Forestry

Miro is a leading commercial plantation forestry business in West Africa. The company is growing fast-rotation tree crops for the production of industrial sawn timber, plywood and electricity transmission poles for the local, regional and export markets.

For more information, visit www.miroforestry.com

Press Contact, Arbaro Fund
Nicole Eggers
Senior Officer
Phone: +49 69 271 035 470
Email: n.eggers@finance-in-motion.com

Press Contact, Miro Forestry
Andrew Collins
CEO
Phone: +44 (0) 7899074158
Email: ac@miroforestry.com