Bates Wells has advised Arbaro Advisors, an investment advisor based in Germany, on a USD 12 million greenfield investment into an establishment of sustainable rubber plantations in Guatemala.

The investment will support the development of 1,500 hectares of sustainably managed forestry, contributing to climate change mitigation, biodiversity conservation, and rural economic development. The transaction is structured as phased equity subscriptions. The plantations are established together with Agrex, S.A., a Guatemalan rubber producer.

The investment is made pursuant to a mandate that Arbaro Advisors is advising on, with a focus on sustainable forestry projects in Latin America. The mandate targets high-impact investments that deliver measurable environmental and social benefits.

Nirav Patel, Partner, and Robbie Speakman, Solicitor, supported on the transaction.

Nirav commented “It has been fantastic working with Mikko and the team at Arbaro on this landmark investment, which exemplifies the kind of sustainable, high-impact projects we’re committed to enabling. This transaction not only advances climate and biodiversity goals, but also supports long-term economic development in the region.

Mikko Reinikkala of Arbaro Advisors commented “Working with Nirav and Robbie has been a pleasure as always. We’ve been able to rely on their professional advice and quick deliveries throughout the process from first drafts of the agreements all the way to final execution.”