San Francisco-based Terra Global secures approval for up to US$40M in financing from OPIC for first globally diverse community-based REDD, land-use carbon fund

Lorena Madrigal

SAN FRANCISCO , November 3, 2011 (press release) – Terra Global Investment Management secures approval for up to $40 million of financing for the world’s first globally diverse community-based REDD and land-use carbon fund. The Terra Bella Fund’s investment strategy is to provide project finance capital to community-based forest and land-use carbon projects in developing countries. This approval for financing is provided by OPIC, as an anchor investment to an expected final fund size of $100 million.

The fund seeks to make investments in projects and jurisdictional programs that generate emission reductions that are today verified under voluntary carbon offset standards but that will in the future be eligible under compliance standards or other payment-for-performance based bilateral offset schemes. The fund’s investments will deliver significant social and environmental benefits. This is at the core of TGIM’s mission as well as supporting sustainable long-term returns to the Terra Bella Fund.

“This approval by OPIC recognizes Terra’s leadership in forest and land-use carbon sector and the value of being able to access a mature pipeline and proven carbon analytical expertise through its affiliate Terra Global Advisory. When committed and made, OPIC’s investment is expected to catalyze further private capital flows that are so urgently needed to combat deforestation, manage landscapes sustainably and build income streams for rural communities,” said Leslie Durschinger, Founder, and Managing Director of Terra Global Capital. “This also will create a significant opportunity to leverage the fund’s private capital with public funds to provide capacity and resources to prepare projects and jurisdictional programs for participation in private sector finance.”

The Terra Bella Fund is targeted at qualified investors motivated by a frontier investment opportunity in carbon asset development, with an emerging market's private equity risk-return profile, alongside its extensive environmental and social benefits. The fund will invest in an estimated 10 to 20 projects in the first three years with an estimated total of 60 investments over the fund’s life. With OPIC’s investment and the commitments from other investors, the fund expects its first close in early 2012.

About Terra Global Investment Management

Terra Global Investment Management, LLC (TGIM) was formed in 2010 to provide private capital to community based land-use carbon projects. TGIM is a subsidiary of Terra Global Capital, LLC which was founded in 2006 with the objective of building a market for community-based forest and land-use carbon projects that provide sustainable livelihoods to communities. As a group, TGC has more global experience in the land-use sector than any other entity and employs a collaborative and participatory approach with its local developing country partners that builds capacity and empowers local people to sustainably manage their land.

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