Deutsche Bank invests $50m in Southeast Asia climate fund

The bank will provide oversight for the programme and oversee fund implementation.

Deutsche Bank invested $50m in the Mekong Earth Regeneration Fund (MERF), a new private equity climate fund in Southeast Asia.

MERF, backed by the Green Climate Fund (GCF), will invest in agribusinesses and value-chain companies that work directly with smallholder farmers. Target markets include Vietnam and Laos.

Deutsche Bank will provide oversight for the programme, ensuring capital is deployed in line with GCF policies, including international environmental and social standards.

Deutsche Bank also oversees fund implementation whilst Mekong Capital will provide fund manager services by investing capital.

MERF aims to advance the transition to sustainable and resilient agriculture and food systems in the Lower Mekong region.

The fund also aims to reduce approximately 8 million tonnes of emissions, and is estimated to support about 300,000 people, according to Deutsche Bank.

The fund is expected to attract capital at a 3:1 ratio.