AGRI3 Fund ramps up its support for enabling regenerative agriculture in Brazil
Amsterdam – Rabobank has closed a 10-year loan of USD 20 million for Agro São José, with AGRI3 taking a 40% risk participation to enable a longer tenor of the facility. The loan will be used to finance a range of investments related to the expansion of the regenerative practices applied by the group and will support Agro São José with transitioning from a conventional to a regenerative business model.
Agro São José is a traditional family owned business based in Rio Claro, Sao Paulo State. The group currently has a productive area of over 8,000 hectares, and is currently active in oranges, sugarcane and in organic lemons.
The loan provided by Rabobank and guaranteed by AGRI3, will finance biological input purchasing which will enable the farm to restore soils with organic compost and in turn lead to a reduction of inorganic fertilisers, with continuous improvements each year. Additionally, the extended use of biological crop protection products, will decrease the use of chemical defensives. The loan will also support the company in planting 430 hectares of orange trees which are to be established using regenerative practices. The company commits to achieving international sustainable agriculture certification. Agro São José will endeavour to develop solutions to be shared as learnings from the company’s regenerative journey in contact with local universities.
AGRI3 looks forward to working further with the company to support them in maximising their native vegetation conservation efforts, knowledge sharing of regenerative practices and addressing social and gender related challenges.
“Agro São José is a fantastic fit for the portfolio of AGRI3, because of its strong and serious regenerative agriculture commitments. With the long-term 10 year tenor, AGRI3 is proud to be supporting the group with the necessary financial means for a transition in its business model.” – Francisco Silva, Investment Advisor, AGRI3 Fund.
“Agro São José is an excellent example of a company striving to build the long term sustainability of their farm by focusing on soils, native vegetation and people. It also offers a fantastic opportunity for learning and knowledge sharing.” – Kate Mathias, Head of ESG and Impact, AGRI3 Fund.
“It is very satisfying to know that we will be part of 10 important years of the sustainability trajectory of this group that has been investing in agribusiness and green initiatives for more than 6 generations.” – Lucas Eurides, Relationship Manager of Rabobank.
About AGRI3 Fund – The AGRI3 Fund was created by the United Nations Environment Programme (UNEP) and Rabobank, together with partners IDH and FMO, the Dutch Entrepreneurial Development Bank, to support the transition to sustainable agriculture. The Ministry of Foreign Affairs of the Netherlands is a donor to AGRI3 Fund. The Global Environment Facility, through Conservation International is a Senior Participant in the Fund. FOUNT and Cardano Development are the Investment Advisors for the Fund. AGRI3 Fund aims to mobilise additional public and private capital globally and at scale. The Fund works with commercial banks, development finance institutions (DFIs), impact investors and institutional investors and provides credit enhancement tools and technical assistance to projects which actively prevent deforestation, stimulate reforestation, contribute to efficient sustainable agricultural production and value chains and reduce carbon emissions and improve rural livelihoods.
For more information, please contact:
Maria-Pia Kelly