Netherlands-based cooperative bank Rabobank announced the launch of the Rabo Impact Foundation, a new platform aimed at investing in projects and businesses tackling societal challenges, ranging from energy transition to affordable housing.
The foundation is being launched with an initial endowment of €102 million (USD$118 million) from Rabobank ,and aims to scale to €1 billion (USD$1.2 billion) over time.
According to Rabobank, the new platform will focus particularly in areas where traditional financing falls short, such as projects too risky for bank financing.
Lizette Wolters, interim CEO of the Rabo Impact Foundation said:
“System change often moves slowly because the investments involve relatively uncharted territory. Banks’ risk models are based on events and data from the past. But for major transitions, that historical data simply doesn’t exist – even though this is exactly where large investments are needed. And that’s where the Rabo Impact Foundation comes in.
The platform will focus on six areas with significant societal impact potential, including the energy and food system transitions, circularity, water, healthcare and affordable housing.
The foundation will target three types of activities, including large-scale projects developing new sustainable markets or infrastructure (impact projects), innovative sustainable concepts, and ventures that have moved beyond the start-up phase but are not yet attractive to conventional investors (impact ventures).
Rabobank said that the platform aims for around twenty investments per year, spread across direct financing, indirect lending, and impact ventures, with impact loans for projects and innovative sustainable concepts starting at €2 million, and equity investments in impact ventures starting at €1 million.
Wolters added:
“As a foundation, we always critically assess whether an investment can truly contribute to system change. Our goal is for market financing to take over in the long run. And any investment must demonstrably serve the public good – not a single company or individual benefiting from the foundation’s funds.”
