Non-bank lenders best placed to fund ‘natural capital’ projects

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Major banks and super funds won’t back projects where farmers lock up land for carbon farming despite the good returns, says Merricks Capital.

There are opportunities for investors to make good returns out of carbon farming and other biodiversity credit schemes, but banks and super funds are unable or unwilling to provide the capital, according to Adrian Redlich, chief investment officer of Liberman-family backed non-bank lender Merricks Capital.

“A lot of the people we are partnering with and lending money to are out seeking these opportunities, but the traditional forms of capital don’t want to fund them,” Mr Redlich said.“Banks for instance don’t want to fund them and the traditional funding mandates such as wealth platforms and super funds haven’t got their minds around pricing,” he told the 2022 Agri Investor Australia Forum in Melbourne.

Merricks financed a farm in NSW that wanted to lock up some of its land and participate in the NSW biodiversity credit program.

 

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