Soy – Brazil (Cerrado)

Key Facts

• Client: Responsible Commodities Facility (RCF) — pool of soy farming groups
• Term: 1-year working capital facility (4th issuance)
• Guarantee instrument: Mezzanine tranche (100% guarantee)
• Guarantee exposure: USD 12.7 Mln (21.5% of total facility)
• Effective date: May 2025

Deal Summary

AGRI3 is supporting the mobilisation of USD 12.7 Mln as the mezzanine tranche of the fourth issuance of the Responsible Commodities Facility (RCF), a USD 57 Mln blended-finance vehicle that provides working capital loans to soybean farmers in Brazil’s Cerrado region at discounted rates, conditional on meeting deforestation-free environmental criteria.

The RCF is an innovative structure that brings together supply-chain companies and investors to incentivise farmers to preserve native vegetation that would not otherwise be protected by commercial lenders. AGRI3 plays a catalytic role in the mezzanine tranche, absorbing second-loss risk to attract senior capital, and has also supported the initiative through TA on sustainable agriculture and traceability in the supply chain.

Impact Rationale

Participation in the RCF requires farmers to demonstrate deforestation-free production and preserve both their legal reserve (LR) and any excess native vegetation (ELR). For the 2025/26 season, the portfolio is expected to protect approximately 39,000 ha of legal reserve native vegetation of which at least 5,000 ha of excess legal reserve, verified through independent monitoring based on shapefiles and CAR geospatial data provided during the onboarding process.

The RCF targets approximately 50 farming groups across the Cerrado and provides eligible farmers with access to working capital loans at below-market rates, creating a tangible financial incentive for sustainable land management. The structure including AGRI3’s participation has attracted substantial attention internationally and is being explored as a model for replication in other commodities and geographies.

AGRI3 is providing TA to support sustainable agriculture best practices among participating farmers and to strengthen environmental and social monitoring systems across the supply chain.

Impact Targets

Protection of natural ecosystem (direct and indirect)

Sustainable agriculture

Improved rural livelihoods