COFIDES has made an investment commitment of up to €25 million to acquire a minority stake in Iberian Smart Financial Agro (ISFA), a leading Spanish company in the development and management of intensive and sustainable agricultural projects in Spain and Portugal. The transaction, financed through the Co-Investment Fund (FOCO), has been structured through a combination of equity and preferred debt.
With the aim of mobilizing foreign investment, FOCO is co-investing in this transaction alongside Three Hills, a London-based European investment firm specializing in providing tailored capital solutions to mid-sized companies in Europe and North America.
The investment will support ISFA’s growth plan, which includes expanding its industrial capacity and developing new sustainable plantations under its Sustainable Efficient System (SES) model. In addition, it will promote the valorization of agricultural by-products through a zero-waste approach, strengthening its capacity to process and transform almonds and other nuts at its facilities.
BOOSTING THE SUSTAINABLE AGRO-INDUSTRIAL SECTOR
The transaction contributes to strengthening foreign investment in Spain’s sustainable agro-industrial sector, promoting technological modernization and water efficiency, as well as advancing the decarbonization of agriculture and the digitalization of farming—key areas for ecological transition and food security.
Ángela Pérez, Chairwoman and CEO of COFIDES, stated that “FOCO’s investment will help accelerate the modernization of Spain’s agro-industrial sector, promoting production models based on technified agriculture and efficient resource management. FOCO’s participation in this transaction will enable ISFA to develop the entire value chain in an integrated manner—from production to industrial processing and the full utilization of by-products—consolidating a more innovative, competitive agro-industrial model aligned with green transition objectives.”
Pablo Vélez, Partner at Three Hills, noted that “we are highly impressed by the exceptional way in which ISFA combines profitability with sustainability, demonstrating that it is possible to develop a technology-intensive agricultural model that is also efficient in water use and has a positive environmental impact. This is fully aligned with the objectives of our sustainability strategy, Three Hills Impact. We consider ISFA a key player in transforming the European agricultural sector towards more resilient and sustainable operating models. We are excited to support the company in this phase of expansion and to help scale a model that generates long-term economic and environmental value.”
Asier Ugaldea, CEO and Co-Founder of ISFA, stated that “this transaction significantly strengthens our position to execute the ambitious expansion plans ahead. The investment will enable ISFA to accelerate its strategic expansion plan through investment in the sustainable development of approximately 1,000 hectares per year of SES crops (sustainable and efficient systems) in the main river basins of the Iberian Peninsula, where ISFA already has a strong presence. It will also allow the company to increase its industrial capabilities, further reinforcing the group’s vertical integration. The plan also includes diversification into new mechanizable crops such as pistachios and blueberries, complementing its current focus on almonds. The incorporation of FOCO and COFIDES, with a vision aligned with our values of sustainability and innovation, provides us with a solid foundation to continue growing as a European benchmark in sustainable agriculture.”
ABOUT FOCO
FOCO is a fund created by the Government through the addendum to the Recovery, Transformation and Resilience Plan (PRTR) and is financed with resources from the NextGenerationEU instrument. With a budget of €2 billion, FOCO aims to boost foreign investment in the Spanish economy by facilitating access to financing for companies linked to the green and digital transitions, as well as technological innovation. FOCO investments must include a foreign co-investor and may be carried out either through direct investment in companies or in investment funds.
ABOUT THREE HILLS
Three Hills is an investment firm that supports the growth of innovative, sustainable, entrepreneur-led companies in Europe and North America through flexible capital solutions. This transaction marks the fifth investment under its sustainability-focused strategy, Three Hills Impact, following its support for the Spanish AgriFood Tech company Hispatec, among others. It also represents its fifth investment in Spain, a strategic market for the firm, with plans to continue deploying capital in the coming years, particularly after opening its Madrid office in 2024.
ABOUT ISFA
Founded in 2019 and headquartered in Vitoria-Gasteiz, ISFA is a vertically integrated agricultural company that develops, invests in, operates, processes, and markets plantations under the innovative SES system, including almonds, olives, pistachios, and blueberries. The company manages its own plantations as well as several investment vehicles, positioning it as a market leader.
ABOUT COFIDES
COFIDES is a state-owned company that manages government financial funds, as well as its own resources and those of third-party institutions, with several objectives: supporting the internationalization of the Spanish economy, attracting foreign investment to strategic sectors in Spain, promoting impact-driven investment in Spain, and contributing to the development of the countries in which it invests. In addition to the Spanish State, which holds a majority stake, its shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell, and CAF—Development Bank of Latin America.
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