The Restoration Seed Capital Facility (RSCF) is excited to announce that Arbaro has successfully closed a USD 14 million investment in the Arandu project in Paraguay.
RSCF provided reimbursable grants enabling Arbaro to develop this project, most notably contributing to legal set-up, offering technical support and enhancing the environmental and social outcomes of this investment.
The Arandu project covers approximately 6,800 ha in the San Pedro region. It will convert land that is currently used for commercial agriculture and cattle grazing into forest plantations and silvopastures, which integrate cattle farming with forestry. The plantations will produce quality logs for solid timber applications – including sawn timber, veneer, plywood – as well as fiber for a new pulp mill located near Arandu. Additionally, 1,150 ha of natural forest and 1,150 ha of grasslands will be preserved under Arbaro’s conservation system.
The project is expected to generate direct formal employment and training to approximately 145 people from local communities, where such opportunities are scarce. By supplying timber products to the local mills, the project also aims to contribute to the development of the forestry industry in Paraguay.
Overall, through its afforestation and conservation activities, Arandu will create new permanent carbon sinks that will sequester an estimated 350,000 tCO2 over the lifetime of the project.
By supporting this initiative, RSCF has helped accelerate and expand the successful close of the investment while driving significant environmental and social benefits that go beyond industry norms.
If you are a fund manager or investment adviser seeking to enhance your environmental and social impacts, learn how RSCF can support your fund or project development here.
