Gide advised the LDN Fund, an impact fund managed by Mirova, for the provision of a profit-sharing loan amounting to $15m to a cocoa and coffee project in Nicaragua.
The financing by LDN Fund will be released in several tranches. It will finance the planting of cocoa and coffee (respectively 75% and 25% of land area), and to a lesser extent of timber for shade purposes, on farms surrounding the plantation. The objective is to expand the farm from the current 2,000 hectares, to 4,000 hectares, in partnership with the local community.
The additional plantation of over 2,000 hectares is notably expected to reforest a severely degraded zone, alleviate deforestation pressures from fuelwood and recreate a canopy.
The LDN Fund is co-promoted by the United Nations Convention to Combat Desertification (UNCCD) and Mirova, and is a first-of-its-kind impact investment strategy investing in profit-generating sustainable land management and land restoration projects worldwide. The Cacao Oro project is its fifth investment and this number is expected to grow rapidly.
The Gide team advising the LDN Fund was led by partners Alexis Pailleret and Marie Bouvet-Guiramand, working with associate Chloé Bouhours, on structuring and financing aspects. Counsel Natasha Peter advised on arbitration aspects.
García & Bodán, also advised the LDN Fund on Nicaraguan law aspects.