Bosques Amazonicos

  • Region: Latin America
  • Location(s): Pucallpa and Madre de Dios, Peru
  • Investment Vehicle: Latam Growth Fund, Latam Peru Fund
  • Industry: Forestry and Environmental Services
  • Date of Initial Investment: Jul 2009
  • Type of Investment: Equity

Bosques Amazonicos (Bosques) is a Peruvian sustainable forestry and carbon sequestration company. Founded in 2005, the company has since emerged as a global leader in the development and commercialization of forestry and environmental assets, certified sustainable logging, land management, and carbon dioxide emissions reductions. The company generates revenues through the sale of carbon emission offsets and the sale of certified high-value timber (tropical hardwoods) from its reforestation projects. Bosques’ vision is founded on the belief that high returns for investors are possible through the efficient management of forests and the development of the Amazon region’s economic potential. In doing so, Bosques strives to make meaningful contributions to the mitigation of climate change, the preservation of biodiversity and the alleviation of poverty.

The Need

Bosques Amazonicos needed financing to fund its new projects, which have the potential to reduce 200 million tons of CO2 emissions over the next 30 years. In addition, the company needed a steady stream of income that would allow it to consolidate and take advantage of the synergies of its REDD projects. These projects are based on the notion that reversing or preventing deforestation provides an immediately available, economically viable, and environmentally and socially beneficial counter-measure to the causes of global warming and the effects of climate change, while generating very significant financial upside to investors.

The Investment

In July 2009, SEAF made an equity investment through its Latam Growth Fund and Latam Peru Fund. SEAF’s investment was made indirectly through the acquisition of 13.99% of Amazon Holdings, a majority shareholder in Bosques. Through this partnership, SEAF is supporting Bosques’ efforts to preserve and replenish the forests of Peru’s Amazon and to reduce carbon emissions over the next 30 years.

The Impact

If the global community is to achieve its climate objectives and thus avoid catastrophic and runaway climate change, carbon forestry will need to represent a sizable slice of the carbon market. Bosques is tapping into and maximizing Peru’s contribution to the mitigation of climate change and to the timber industry in an economically sustainable way. Consequently, SEAF’s investment in the company supports these efforts by financing the first stages of its projects and improving the company’s financial planning. With these funds, Bosques is positioning itself as a global leader in forestry carbon credits while simultaneously sustaining the forest of Peru’s Amazon region.