Amundi unveils sustainable agriculture debt fund

The vehicle has received an initial commitment from Crédit Agricole and is targeting €750m to improve agricultural sustainability.

Paris-based asset manager Amundi has launched a private debt investment strategy focused on sustainable transition for the European agriculture and food sector.

The initiative was announced today at France’s ministry of the economy by Amundi chief executive Valerie Baudson, confirming that it has held a first close of Amundi Ambition Agri-Agro Direct Lending Europe with a €130 million commitment from Crédit Agricole Group.

The fund is targeting €750 million from institutional investors and will aim to finance European companies in the agricultural and agri-food sectors that are committed to transitioning to a more sustainable, low-carbon model.

Amundi’s real and alternatives assets private debt team will manage the fund and will invest across the capital structure with senior, unitranche and subordinated debt. The fund will be marketed for the next 12 to 18 months and will target an average yield of three-month EURIBOR plus 7 percent.

The vehicle falls under Article 8 of the European Union’s Sustainable Finance Directive.

Jean-Pierre Touzet, head of the agri-agro – guarantee – capital development division at Crédit Agricole, said: “This new fund offers companies in the agricultural and agri-food sector an alternative and complementary financing solution to traditional debt.

“It completes the Crédit Agricole Group’s ‘Ambition Agri-Agro’ range, which includes a private equity fund managed by IDIA Capital Investissement and an innovation capital fund managed by our partner Supernova Invest, both of which are already operational. Our ambition is to mobilise a total of €1 billion to finance transitions in the agricultural and agri-food sector.”