Mountain Hazelnuts secures landmark international investment, strengthening Bhutan’s sustainable agriculture sector

Mountain Hazelnuts (MH), Bhutan’s first fully foreign direct investment (FDI) and a leading force in sustainable agroforestry, has secured a groundbreaking US$ 7.9 million equity investment to expand its climate-resilient farming initiatives. The investment into the holding company Mountain Hazelnuts Group PTE. Ltd., Singapore (MHG) comes from its long-term partner Mirova, an affiliate of Natixis Investment Managers dedicated to sustainable investment (US$ 3.9 million) and from Team Europe member Finnfund (US$ 3 million), Finnish development financier and impact investor. The balance includes initial commitments from Management & Founders and a Private Investor that are forming part of the equity round.

Supporting Sustainable Land Use and Co-Benefits for Local Communities

Mountain Hazelnuts was founded in 2009 to create a profitable business that provides long-term income for vulnerable communities in Bhutan by planting 10 million hazelnut trees to restore degraded mountain slopes¹. The company works with Bhutanese smallholder families and community groups to provide additional income-generating opportunities that also help to restore the nation's fallow and degraded land. As agreed with the Royal Government of Bhutan (RGoB), Mountain Hazelnuts buys all harvested nuts according to a guaranteed price structure that removes market risk for the growers and ensures a profitable crop. The company inspects every site to consider the ecological impact before an orchard is designed and planted. Approval is only given for those sites that meet the agreed principle.

Setting a Precedent for Sustainable Development Investment in Bhutan

This investment is supported by the European Union (EU) and the European Fund for Sustainable Development Plus (EFSD+), a key financing instrument of its Global Gateway strategy, which promotes sustainable investments in EU partner countries. Finnfund and MH played a pivotal role in securing Bhutan's eligibility for EFSD+. Finnfund and Mirova have utilized an EFSD+ guarantee under the Carbon Sinks program, which supports investments into forestry, agro-forestry, carbon sinks ecosystems, and blue economy. Carbon Sinks is an initiative managed by EDFI Management Company SA.

With this investment, MH is now fully funded for the next five years, ensuring the completion of climate adaptation grafting programs, factory expansions, and international certifications such as Rainforest Alliance and Organic. The funding also strengthens MH’s market positioning, allowing it to secure premium pricing for Bhutanese-grown hazelnuts internationally.

This milestone investment underscores growing international confidence in Bhutan’s sustainability-driven private sector, setting a precedent for future European Development Financial Institutions and foreign direct investments in the country. It also reinforces Finland’s role in supporting Bhutan’s economic resilience and commitment to environmental sustainability.

“This investment is a testament to the confidence our international partners have in Bhutan’s potential as a leader in sustainable agriculture. With this support, we can further empower rural communities, enhance climate resilience, and bring premium Bhutanese hazelnuts to global markets.”

Sean Watson (PhD)
CEO of Mountain Hazelnuts

“Mirova has been a longstanding partner of Mountain Hazelnuts since 2020 and we are proud to have provided our close support to the management and the company’s operations over these past years. With this equity round secured and the addition of a new partner, the company has completed its funding requirements to achieve its strategic ambitions and is well positioned to take advantage of its unique positioning in the market.”

Antoine Raes
Investment Director based in Natixis IM Singapore office and dedicated to the Mirova Division²

“This is Finnfund's first investment in Bhutan and we are delighted to contribute to the growth of sustainable, regenerative agriculture in the country. We are confident that this investment has a catalyzing effect in financing the sector. We also appreciate the strong commitment that Mountain Hazelnuts has shown to increase share of women as farmers, community lead growers, employees and managers and look forward to supporting the company in reaching the agreed targets.”

Ilkka Norjamäki
Associate Director, Head of Agri and Forestry portfolio at Finnfund

Offering a variety of risk-sharing instruments of up to €40 billion, the EFSD+ aims to mobilise up to €135 billion of public and private financing to help partner countries globally achieve the Sustainable Development Goals (SDGs). Speaking about the support, Hervé Delphin, Ambassador of the European Union to India and Bhutan, said:

“As a long-standing partner of Bhutan, we have accompanied and supported Bhutan’s strategy to develop its natural resources in a sustainable way while Bhutan remains a global trailblazer in the preservation of its Environment and remains one of the very few carbon negative countries in the world. We are glad to have mobilized the innovative 'Carbon Sinks guarantee' financing instrument through TeamEurope to develop the Bhutanese hazelnut value chain and foster robust market linkages for Bhutanese products. Generating economic value goes hand in hand with preserving environmental value.”

Hervé Delphin
Ambassador of the European Union to India and Bhutan

¹ Source: Mountain Hazelnuts
²Mirova's presence through a division hosted at Natixis Investment Managers Singapore Limited

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Mirova

Mirova is an affiliate of Natixis Investment Managers.
Portfolio management company – French Public Limited liability company
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www.mirova.com

Natixis Investment Managers
Natixis Investment Managers is a subsidiary of Natixis.
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www.im.natixis.com

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