News Detail

01 Jul

Press Release – Arbaro Fund makes second investment 


Fund makes USD7.5 million equity investment in new company Forestal Apepú SA to establish reforestation project in Paraguay

Arbaro Fund makes second investment 
Fund makes USD7.5 million equity investment in new company Forestal Apepú SA to establish reforestation project in Paraguay


Frankfurt, July 1, 2019 – The Arbaro Fund (Arbaro), which invests in sustainable forestry projects in Latin America, the Caribbean, and Sub-Saharan Africa, has announced its second investment to the value of USD 7.5 million. The investment established a new forestry company, Forestal Apepú SA (Apepú), which is fully controlled by Arbaro. The company operates in Eastern Paraguay which has excellent biophysical growing conditions.

Apepú acquired a total of 2,100 hectares (ha) where 1,400ha will be used as a plantation area, 400ha will remain natural forest under conservation and 300ha will be used by local cattle farmers as pasture land for cattle grazing using a silvopastoral system. The plantation area is the first investment within the planned cluster of Arbaro’s reforestation projects in Paraguay. The site consists of one continuous area with favourable topography of flat land with good soil for forestry. Located in the San Pedro region it is also an excellent location in terms of access to markets, making it a perfect starting point for Apepú’s business. 

“This investment shows that applying best practice silviculture is at the heart of what Arbaro is all about and that by using land in a variety of ways, ensures it is done efficiently and sustainably,” said Marco Kaiser, Managing Director of Arbaro Advisors GmbH, the investment advisor of the fund. “Paraguay is expected to be one of the largest country exposures for the fund with further investments planned as there is great potential for integrating operations between the different portfolio companies.” 

Apepú will be working with Unique Wood who will be the technical manager of the plantation. Given their long-standing presence in Paraguay, Unique Wood knows the region intimately, and understands the silvicultural requirements, market conditions, and the local forest industry.

The new investment will help to reduce pressure on natural forests and provide the local wood processing industry with high quality timber. The forest to be planted by Apepú is expected to sequester ca. 0.35 million tons of CO2 and support more than 100 full time jobs along the whole value chain from producing plant material to harvest. Apepú targets FSC certification within the next 12 months.

About Arbaro Fund, SLP 
Arbaro is a Luxembourg-based private equity fund managed by FiM Asset Management S. à 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

Press Contact, Arbaro Fund
Anabel Tennassie-Goossens
Senior Officer Communications and Marketing
Phone: +49 69 271 035-580
Email: a.tennassie@finance-in-motion.com