Following Huruma’s success story in India, Kuali Fund launched to drive climate-resilient finance in India
New Delhi, October 14, 2025. COFIDES, together with the European Union, GAWA Capital, and the
Embassy of Spain, officially launched the Kuali Fund in India. A new innovative impact investment
vehicle, Kuali Fund seeks to mobilize over EUR 200 million to accelerate the transition towards low-carbon economy and to strengthen climate resilience among vulnerable communities in India, Latin
America, and the Caribbean.
Supported by the European Union, the Spanish Agency for International Development Cooperation
(AECID), and the Green Climate Fund (GCF), and managed by GAWA Capital with structuring by
COFIDES, Kuali Fund will channel investment into financial institutions and companies providing
innovative climate adaptation and mitigation solutions.
In India, Kuali aims to reach over 250,000 smallholder farmers and innovative SMEs, while avoiding
more than 1.2 million tons of CO₂ emissions over the next decade. India represents a cornerstone of
Kuali’s strategy—not only due to its scale and climate vulnerability, but also because of its vibrant
entrepreneurial ecosystem and strong potential for replicable climate innovation. By anchoring a
significant share of the portfolio in India, Kuali enhances its geographic and sectoral diversification,
catalyzes inclusive growth, and broadens exposure to a dynamic ecosystem of climate solution
providers.
This follows the success and experience of the Huruma Fund which pioneered financing for
smallholder farmers and agri-SMEs traditionally excluded from the financial system across Latin
America, Africa, and Asia, including India. The new fund was announced at the conference “Inclusive
and Green Finance in India for Smallholders and SMEs: Lessons Learnt and Opportunities from
European Funded Instruments.” Both Huruma and Kuali illustrate the power of combining public and
private resources to create measurable impact in the agri-food sector and beyond.
Announcing the launch of the Kuali Fund in India, Luca Torre, Co-CEO, GAWA Capital said “the Kuali
Fund has been set up with the objective of investing in companies that help vulnerable communities
become more climate resilient. Leadership and support of the European Commission, COFIDES,
AECID, and the Green Climate Fund have been essential behind setting up of the Kuali Fund. Special
thanks to our Indian partner, Small Industries Development Bank of India (SIDBI) – whose collaboration
will be key to bringing this initiative to life on the ground.”
During the Fireside Chat on Climate Change Challenges and Opportunities, José Carlos Villena, Director
of Development Finance at COFIDES, highlighted the importance of stronger cooperation between
European and Indian partners to bridge the climate finance gap, particularly in adaptation. He
emphasized that “public–private partnerships are fundamental to making climate finance work on
the ground.” Villena underscored that “development finance institutions must design structures that
align public objectives with private incentives — leveraging instruments such as the Huruma and
Kuali Funds — to channel investment towards adaptation.” He concluded by noting that
“collaboration between Europe and India is essential to transform this shared vision into tangible,
lasting impact for local communities.”
BUILDING ON SUCCESS: THE HURUMA FUND AND INDIA
The launch also highlighted experiences from the Huruma Fund, which has successfully pioneered
inclusive financing for smallholder farmers and agri-SMEs. Managed by GAWA Capital and supported by the European Union, Spanish Cooperation, and COFIDES, Huruma operates across Latin America,
Africa, and Asia.
India has emerged as the Fund’s largest exposure country, representing 28.2% of its total
investments, more than EUR 28 million across three equity operations. Through Huruma, thousands
of Indian smallholders have gained access to resources that improve productivity, resilience, and
sustainability, advancing inclusive rural development.
TEAM EUROPE-INDIA COOPERATION
The conference “Inclusive and Green Finance in India for Smallholders and SMEs: Lessons Learnt and
Opportunities from European Funded Instruments” underscored the growing collaboration between
Team Europe and India, showcasing how European blended finance instruments are fostering
sustainable development and climate adaptation, supporting smallholders in India rural areas and
help creating green jobs.
The event brought together representatives from the Government of India, the European Union, the
Embassy of Spain, the Green Climate Fund, Development Finance Institutions such as
PROPARCO, International Finance Corporation (IFC) and SIDBI, technical agencies including GIZ, and
and local financial institutions such as Sindhuja and Pahal. SIDBI (as Accredited Entity of GCF) and
Kuali Fund are collaborating to enable SMEs and Climate focused financial institutions expand their
green horizon by availing equity capital and technical assistance. Kuali will complement GCF funded
Financing Mitigation and Adaptation Project (FMAP project) being executed by SIDBI to scale up
funding to MSMEs in mitigation and adaptation aligned areas.
ABOUT COFIDES
COFIDES is a state-owned trading company that manages financial funds from the Spanish State, as
well as its own resources and those of third-party institutions with various objectives: the
internationalization of the Spanish economy, the attraction of foreign investment into strategic
sectors in Spain, the promotion of the impact economy in Spain, and the contribution to the
development of the countries in which it invests. In addition to the State, which holds a majority
position, other shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco
Sabadell, and CAF–Development Bank of Latin America.
ABOUT THE EUROPEAN UNION (EU)
The European Union (EU) is a unique political and economic union between 27 European countries,
established to foster economic cooperation, promote peace and stability, and enhance the well-being
of its citizens. Founded on the principles of democratic governance and the rule of law, the EU is
dedicated to improving the lives of its approximately 450 million inhabitants by implementing policies
that cover a wide range of areas including trade, security, environment, and human rights.
Championing policies that address environmental challenges and promote green growth, the EU
strives to lead the transition to a sustainable future, demonstrating its commitment to both current
and future generations.
EU-India relations: For over 60 years, the European Union and India have collaborated to reduce
poverty, prevent disasters, protect human rights, expand trade, and promote joint research in areas
such as energy, health, agriculture, and many other fields of mutual interest. More information at:
http://eeas.europa.eu/delegations/india
Madrid, October 13, 2021.- COFIDES and the company managing the Huruma Fund, GAWA Capital Partners, have signed an agreement to set up a Technical Assistance Facility (TAF) to support primarily the beneficiaries of the Fund investments. The TAF, also managed by GAWA and created in parallel to the Fund for a period of ten years, will be financed with a donation of the European Union of 7.7 million euro, and is open to contributions by other potential donors.
The Facility shares the Huruma Fund objectives: to help improve access to financing in rural areas and to increase the financial offer for smallholder or excluded farmers in the regions of Latin America, the Caribbean, Sub-Saharan Africa and Asia. The TAF will be a close partner of the institutions supported by the Fund, and may also collaborate with other entities to increase and consolidate its impact.
SUPPORT FOR BENEFICIARIES OF THE FUND
The Facility may co-finance various types of projects with Financial Entities that are beneficiaries of the fund, including those aimed at developing farming financial products adapted to the needs of the target population, implementing technologies that help improve their services, and credit and farming training for their employees. The TAF may also support producer organizations and farming SMEs to enhance the agricultural value chain through projects such as consultancy on sustainable farming practices, marketing, human resources or the search for alliances with financial institutions to create savings products and health and medical insurance tailored to the needs of the population.
Furthermore, the TAF also targets activities that indirectly favour the Fund beneficiaries, as it includes a knowledge sharing program (best practices, seminars), with a cross-functional scope for farming projects that, for example, help correct market failures or improve a country’s investment climate.
The Chairman of COFIDES, José Luis Curbelo, states that, “one of the main strengths of blended finance is the vision with which projects are addressed, which is not only concerned with achievement of the objectives, but also with the transfer of knowledge, thus having not only a greater impact but also longer in time, which is a clear advantage for the people”.
The Director of Multilateral, Horizontal and Financial Cooperation at AECID [Spanish Agency for International Development Cooperation], Fernando Jiménez-Ontiveros, highlights, “the importance of complementing reimbursable financing with technical assistance resources to reinforce the quality of the interventions and achieve a greater impact. The role of the European Union in the provision of technical assistance funds has been crucial and the Huruma Fund is a good example of this excellent practice”.
In turn, the Head of the Department of Transformation at GAWA Capital, José García, says, “the complementarity of investment and skill building has a far broader power of transformation than the sum of its parts and helps maximize efficiency and impact. The development of capabilities in the entities supported by the Huruma Fund will help them innovate and improve their current performance in order to continue being relevant in a constantly changing environment”.
ABOUT HURUMA FUND
Huruma Fund, the first project led by COFIDES under the EU blending facilities, has completed a final closing with total commitments of 120 million euros, making it the largest social impact fund in Spain.
Huruma Fund, to which COFIDES contributes with one million euros, has a first-loss tranche investment commitment from the European Commission (10 million euros). Spanish Cooperation, through the Development Promotion Fund (FONPRODE), has subscribed debt securities for an amount of 20 million euros. These contributions have enabled Huruma Fund to mobilise approximately 90 million euros from private investors.
ABOUT GAWA CAPITAL
Founded in 2010, GAWA Capital is the leading impact investing fund manager in Spain, having raised over 195 million euros in public and private investments towards impact investing. Its aim is to improve the life of low-income communities by promoting investment in social enterprises, while providing a financial return to investors.
Since its creation, GAWA has pioneered the introduction of impact investing assets in Spain by launching three funds, as well as advising a third-party fund – Magallanes Impacto FIL. Each one of these funds has invested capital and debt in emerging countries, in companies with an inclusive approach, focusing on providing market-based solutions to key social problems such as poverty. To date, GAWA has carried out investments in 15 countries, with a history of positive financial return in its three funds prior to Huruma, including 6.34% annual IRR for investors in their first fund.
ABOUT COFIDES
COFIDES, a State-owned company engaging in the management of State and third-party as well as its own funds, pursues a number of aims: internationalisation of Spain’s economy, furtherance of economic development and fortification of the solvency of companies affected by COVID-19. In addition to the Spanish State, its shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).
ABOUT AECID
AECID is the main management body of Spanish Cooperation and is oriented towards the fight against poverty and the promotion of sustainable development. The Agency encourages the full exercise of development, conceived as a fundamental human right, with the fight against poverty being part of the process of building this right. To do this, it follows the guidelines of the V Master Plan for Spanish Cooperation, paying attention to transversal elements: the approach based on human rights and fundamental freedoms, the gender perspective, environmental quality and respect for cultural diversity; all in line with the 2030 Agenda for Sustainable Development. AECID belongs to the Ministry of Foreign Affairs, European Union and Cooperation through the State Secretariat for International Cooperation.
This press release was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.
Madrid, July 21, 2021.- Huruma Fund has completed a final closing with total commitments of 120 million euros. The Fund has been able to mobilise capital from a wide range of private investors in only 9 months of fundraising.
Huruma Fund is a significant milestone in the development of the impact investing sector in Spain, confirming the interest of a diverse community of private investors, including the participation of clients from Caixa Private Bank, I-Capital, Ceniarth, Libra Foundation and the Allianz Group.
Huruma Fund aims to tackle poverty by making financial services available to small farmers to help them purchase the right farming inputs and better manage risks. The fund supports microfinance institutions by providing both investments as well as technical assistance. It operates in Latin America, the Caribbean, Sub-Saharan Africa and Asia.
Huruma Fund is the largest impact investing fund ever raised in Spain and is the first fund with a blended finance structure. The fund has a first-loss tranche investment commitment from the European Commission (10 million euros), which helps to greatly reduce the risks for other investors, thereby allowing the mobilisation of further funding. Spanish Cooperation, through the Development Promotion Fund (FONPRODE), has subscribed debt securities for an amount of 20 million euros. These contributions have enabled Huruma Fund to mobilise approximately 90 million euros from private investors.
Managed by GAWA Capital, Huruma Fund has already made several investments in Latin America, in microfinance institutions with longstanding experience in financing smallholder farmers.
CONSOLIDATION OF IMPACT INVESTING
Carla Montesi, Director for the Green Deal and Digital agenda Directorate at the European Commission, welcomed the announcement of the additional investment by the Allianz Group in the Huruma Fund. “This reflects European Commission’s aim to attract more public and private investors into the agricultural sector to improve the livelihoods of small farmers”. She added that “Sustainable Agriculture is central to achieve an inclusive, fair and green growth in our partner countries, and limited access to credit represents a major constraint for smallholders. Innovative finance instruments – such as blending and guarantees – attract greater investment and are becoming an increasingly important part of the EU’s toolbox”. “Moreover, Huruma Fund is fully aligned with the social and environmental sustainability ambitions of the European Commission’s Green Deal and Farm-to-Fork strategies”.
The Chairman and CEO of COFIDES, José Luis Curbelo, maintains that the successful mobilisation of private capital by Huruma, “proves the importance of combining private and public resources from different sources to structure sustainable financing models where each stakeholder can contribute their own perspective and requirements regarding the risk assumed and the expected return”. In this regard, “impact investing is a rising trend and a paradigm shift in which social responsibility, sustainability and measurement play a decisive role, together with financial return”.
AECID’s Director for Multilateral, Horizontal and Financial Cooperation, Fernando Jiménez-Ontiveros, expressed his satisfaction with the kick-start of the fund and highlighted the importance of the catalytic effect of public funding in attracting private capital to the sector of impact investments in geographical areas of special relevance for the Spanish Cooperation, in particular Latin America and the Caribbean and Sub-Saharan Africa, thus contributing to the achievement of the Sustainable Development Goals.
The CEOs of GAWA Capital, Luca Torre and Agustín Vitórica, stated that, “Allianz’s investment shows that global institutional investors are keen to invest in funds designed to address a specific market failure with high impact potential. Thanks to the support of Allianz and all our investors, over 100,000 smallholder farmers in developing countries will receive the financing they need to productively cultivate their land, increase their income and finally escape the vicious circle of poverty”.
ABOUT HURUMA FUND
Huruma Fund, launched by GAWA Capital, is the first project led by COFIDES under the blending facilities of the EU. The Fund is the largest impact investing fund in Spain, aimed at increasing access to financing for small or excluded farmers in rural areas of Latin America, the Caribbean, sub-Saharan Africa and Asia. Furthermore, to enhance the Fund’s impact, Huruma also offers a Technical Assistance Facility (TAF) to provide consulting or training services on matters related to agriculture to strengthen the entities the fund invests in and their impact on the excluded rural population.
ABOUT COFIDES
COFIDES, a State-owned company engaging in the management of State and third-party as well as its own funds, pursues a number of aims: internationalisation of Spain’s economy, furtherance of economic development and fortification of the solvency of companies affected by COVID-19. In addition to the Spanish State, its shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).
ABOUT AECID
AECID is the main management body of Spanish Cooperation and is oriented towards the fight against poverty and the promotion of sustainable development. The Agency encourages the full exercise of development, conceived as a fundamental human right, with the fight against poverty being part of the process of building this right. To do this, it follows the guidelines of the V Master Plan for Spanish Cooperation, paying attention to transversal elements: the approach based on human rights and fundamental freedoms, the gender perspective, environmental quality and respect for cultural diversity; all in line with the 2030 Agenda for Sustainable Development. AECID belongs to the Ministry of Foreign Affairs, European Union and Cooperation through the State Secretariat for International Cooperation.
ABOUT GAWA CAPITAL
Founded in 2010, GAWA Capital is the leading impact investing fund manager in Spain, having raised over 195 million euros in public and private investments towards impact investing. Its aim is to improve the life of low-income communities by promoting investment in social enterprises, while providing a financial return to investors.
Since its creation, GAWA has pioneered the introduction of impact investing assets in Spain by launching three funds, as well as advising a third-party fund – Magallanes Impacto FIL. Each one of these funds has invested capital and debt in emerging countries, in companies with an inclusive approach, focusing on providing market-based solutions to key social problems such as poverty. To date, GAWA has carried out investments in 15 countries, with a history of positive financial return in its three funds prior to Huruma, including 6.34% annual IRR for investors in their first fund.
This press release was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.
Madrid, June 21, 2021.- The Huruma Fund, managed by GAWA Capital and financed by the European Union, FONPRODE, COFIDES and private investors and savers, has formalised a first operation in Peru in a Savings and Loan Cooperative (COOPAC) called “Norandino”, based in Peru. Norandino serves primarily smallholder farmers and agricultural cooperatives active in the coffee, cocoa, sugar and banana value chains (but also more recently rice, maize, vegetables and fruits), with various types of tailored credit and savings products, at interest rates that are lower than market average.
Huruma Fund’s 3 million euros’ investment will enable Norandino to expand and diversify its portfolio, thereby increasing their client base by nearly 30%. The 3-year term for the investment is aligned with the usual longer terms for farming loans, adapting to the financing needs of these entities.
FINANCING FOR SMALLHOLDER FARMERS IN PERU
COOPAC Norandino, founded in 2005 by coffee growers, leads financing for smallholder farmers in the north of Peru, under the motto: “For farmers, by farmers”. With a portfolio of 20 million euros, it reaches over 27,000 clients (32% women) through 16 branches covering 4 regions (Cajamarca, Piura, San Martín and Amazonas). COOPAC Norandino plays a major role in the promotion of farming value chains, reinforcing smallholder associations and powering sustainable agriculture.
BETTER CLIENT ACCESS AND AGRICULTURAL RISK MANAGEMENT
To facilitate transformation processes, Huruma partners are also analysing other ways to support Norandino, with projects to improve social performance, digitalisation and agricultural risk management systems, promoting the use of Data Analytics in cooperatives.
The Director of Investments at GAWA Capital, Tomás Ribé, states that: “Thanks to the Fund’s financing, COOPAC Norandino will continue supporting agriculture producers with limited financial resources during the COVID-19 pandemic”. The Joint CEOs of GAWA Capital, Agustín Vitórica and Luca Torre, point out: “With this investment, Huruma will help strengthen the agricultural sector in the north of Peru hand in hand with a cooperative made up of smallholder farmers in this region”.
The Chairman of COFIDES, José Luis Curbelo, notes the value of the “transformative power” of the Huruma Fund through “investments that will benefit smallholder farmers that usually have difficulties to access financial services that allow them to competitively transform their operations. The Huruma Fund will help improve their productivity and their quality of life, strengthening their position in the agriculture value chain”.
The EU Ambassador to Peru, Diego Mellado, sees the Huruma Fund as “an important tool in European Union cooperation with Peru”. “It is highly complementary to EU efforts to improve the sustainability of the Peruvian value chains and food systems, in environmental, economic and social terms, providing fair revenue for producers.”
ABOUT THE HURUMA FUND
The Huruma Fund, launched by GAWA Capital, is the largest social impact fund in Spain. It aims at providing access to credit to farmers in poor rural areas in Latin America, the Caribbean, sub-Saharan Africa and Asia, by providing debt or equity (as well as Technical Assistance) mainly to Micro Finance Institutions, which will then be able to propose adapted lending products to farmers, and, to a lesser extent, to agri-SMEs/cooperatives.
The total budget of the Huruma Fund is 120 million euros to which the European Union contributes with 10 million euros in equity in the Fund’s first loss tranche. This has allowed to attract 90 M EUR from private investors, also thanks to the collaboration of CaixaBank Banca Privada, which has distributed the fund through its national network. Other investors are FONPRODE (an instrument of the Spanish International Cooperation for Development Agency-AECID) and COFIDES. The Fund is complemented by a Technical Assistance Facility (TAF), also financed by the EU, to provide consulting or training services on matters related to agriculture and contribute to the improvement of the entities in which the fund invests so they can increase their impact on the excluded rural population.
ABOUT GAWA CAPITAL
Founded in 2010, GAWA Capital is the leading fund manager in advice on impact investing in Spain, having deployed over 195 million euros in public and private investments towards impact investing. Its aim is to improve the life of low-income communities by promoting investment in social enterprises, while providing a financial return to their investors. Since its creation, GAWA has pioneered the introduction of impact investing assets in Spain by launching three funds. Each of these funds has invested capital and debt in emerging countries, in companies with an inclusive approach focusing on providing market-based solutions to key social problems such as poverty. To date, GAWA has carried out investments in 15 countries, with a history of positive financial return in its three funds prior to Huruma, including 6.34% annual IRR for investors in their first fund.
ABOUT COFIDES
COFIDES is a state-owned company which has been offering financial support to Spanish companies investing abroad. COFIDES is accredited to the European Union (EU) to manage funds coming from the EU budget, allowing the structuring of transactions with a high impact on development. COFIDES is also accredited to the UN’s Green Climate Fund (GCF) and can therefore structure operations on climate change mitigation and adaptation. Moreover, COFIDES is the exclusive manager of FIEX and FONPYME funds on behalf of the Secretariat of State for Trade attached to the Ministry of Industry, Trade and Tourism and also supports AECID in managing FONPRODE funds. COFIDES’s shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and CAF-Development Bank of Latin America.
This press release was produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.