Common Fund For Commodity (CFC): Inviting applications for ‘investment’ to provide a range of financial and technical instruments to support projects proposed by enterprises, cooperatives and institutions along the entire commodity value chain in its member countries.

Funding brief: The Common Fund for Commodities (CFC) provides a range of financial and technical instruments to support projects proposed by enterprises, cooperatives and institutions along the entire commodity value chain in its member countries. These activities cover all segments of the value chain (including production, processing, financing, marketing etc.). This includes services and support functions, that help all participants in the process of value generation to improve the economic, social and environmental well-being of its poorest participants at the bottom of the pyramid.

The support is offered mainly through loans to finance equipment, working capital or trade finance needs. The CFC seeks applications of projects that have reached a state of economic, social and environmental sustainability. These applications should clearly show operational and financial viability, with a proven track record. Women entrepreneurs are encouraged to apply.

Project proposals incorporating innovative solutions for the commodity sector (e.g. new agritech applications, increase availability of renewable and affordable energy, expanding environmental services) are especially expected to be submitted.

Objectives of CFC’s Project Financing
CFC supports activities which promote the contribution of the commodity sector to achieving the SDGs in CFC member countries including the following aspects:
(i) Social: Create employment (particularly for youth and women), provide sustained increase in household incomes, reduce poverty, and enhance food security.
(ii) Economic: Enhance production and productivity, achieve higher local value addition; improve competitiveness of producers, producer organisations and small and medium sized industries, support the financial sector development.
(iii) Environmental: Enhance production taking into account the environment and its long term possibilities for the same, or increased use of productive resources while maintaining or reducing the impact on the environment.

The CFC supports implementation of activities along the value chain that:
– Are innovative, scalable and replicable,
– Are financially sustainable,
– Have a potential measurable positive socio-economic and environmental impact on the stakeholders in commodity value chains as compared to the prevailing baseline situation,
– Develop stronger connections with existing markets or create new markets along the value chain,
– Increase financial or other services available for commodity producers and commodity based businesses,
– Enhance knowledge generation and information dissemination,
– Build effective and cost-efficient collaboration between producers, industry, governments, civil society organisations and other stakeholders for commodity based development, and
-Enhance the efficiency and effectiveness of agricultural value chains inter alia including climate change and energy related sensitive components as appropriate.

For all forms of finance, please bear in mind that:
– The CFC will only consider proposals where its share of financing does not exceed 50% of the total amount of financing required for the project;
– The CFC expects that financing provided from other sources will be shown in the financial projections. Assets which cannot be shown in financial statements would not normally be accepted as co-financing and should not be included in the cost estimates;
– The total term of the loan should normally be 3 to 5 year duration. In an exceptional case, reasons the same to be provided by proponents at the proposal submission stage, may be extended but should not exceed 7 years;
– The applicable interest rate will be determined by the CFC based on the risk profile of the project;
– Equity financing is mainly intended for projects where equity is explicitly required, e.g. impact investment funds;
– In the case of equity investments, the CFC usually owns a minority stake only, and never more than 49 % of equity capital.

Please ensure that a financial plan including a consistent balance sheet is provided.

Donor Name: Common Fund For Commodity (CFC)
Funding name: No specific fund name

Deadline: All interested parties are kindly invited to submit qualifying proposals no later than 15th, April, 2020.

Funding details link: Click to view

Funding limit:
Term loans:
 Loan amount between USD 300,000 and USD 1,500,000 (or EUR equivalent);
 Loan period up to 5 years with maximum 2-year grace period;
 Collateralized with pledge / mortgage over fixed assets or with third party guarantees;
 Indicative interest rate between 5% and 10% depending on CFC’s assessment of risk and Local market rates.
Trade finance
 Loan amount between USD 300,000 and USD 1,500,000 (or EUR equivalent);
 loan period up to 12 months, annually renewable for up to 5 years in total;
 The loan will be disbursed based on sales contracts from eligible buyers. The buyers agree to make full payment under the sales contract directly into the account of the CFC;
 Indicative interest rate between 5% and 10% depending on CFC’s assessment of risk and local market rates.
Fast track financing
 Can be considered for activities yielding immediate results towards CFC objectives as stated under the Call for proposals document and / or the development of innovative products and services in a precommercial phase:
 financing amount of between USD 50,000 and USD 120,000 (or EUR equivalent);
 In principle, Fast Track financing concerns returnable funding with flexible financing and security conditions, under a simplified approval procedure.

Special Notes: Please contact with the donor directly for further clarification and understanding.

Project start date: Not found

Project duration: Not found
Term loans:
– Loan period up to 5 years with maximum 2-year grace period;
Trade finance
– Loan period up to 12 months, annually renewable for up to 5 years in total;

Eligible organization: As below

Eligibility:
All legal public and private entities are eligible to apply under this Call for Proposals, provided they:
 Operate in commodity value chains in CFC member countries or provide financial services to micro, small and medium sized businesses operating in these value chains,
 Have a proven relevant track record of sound financial operations in their current and / or proposed activities over a period of at least 3 years, which can be documented by means of (audited) financial statements, and
 Share CFC’s values, including internationally recognized principles concerning human rights, labour, the environment and anti-corruption as reflected in the United Nations Global Compact.

The amount of finance requested from CFC should not exceed 50% of the total amount required to execute the project. The balancing amount of co-financing is to be provided by the applicant and/or by other co-financiers. Such co-financing should be relative to the new funding requirement for the (investment) project and should be reflected in financial projections for the project, which will be subject to verification if the project is financed by the CFC. Sunk cost are not eligible to be considered as a financial contribution.

A thorough assessment of the co-financing available will form part of CFC’s final due diligence verification.

Eligible Country: No country bar found (Open to all regions)

Submission mail: opencall@common-fund.org

Other important link:
Guideline: Click to view and Click to view
Form (Proposal): PDF (Click to view) Word (Click to view)
About: Click to view
Balance Sheet and Income Statement: Click to view

How to apply: Please submit the completed application form and any supplementary Documents to opencall@common-fund.org or by mail addressed to the Managing Director, Common Fund for Commodities, P.O. Box 74656, 1070 BR, Amsterdam, The Netherlands.
Please complete the table indicating which documents are submitted to support the proposal. The completed Application Form may not exceed 20 pages. Please do not include documents unless they contain information directly relevant to the proposal.
Please make sure to provide complete financial data and a financial plan. For all financial projections it is strongly recommended to use the model Excel worksheets provided with this Call for Proposals. To facilitate any analysis of data, the files containing completed financial worksheets should be submitted electronically together with the application form. Please provide the original Excel worksheets rather than pdf or screenshot versions of the same. Absence of such original worksheets will lead to rejection of such a proposal.
If any of the documents contain sensitive financial or commercial information, please indicate this clearly.FundForBangladesh-BorderVisit all Funding opportunities: Click to view
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