Soy, Cotton and Corn – Brazil

Key Facts

• Term: 10-year loan
• Guarantee instrument: Maturity Subordination Guarantee
• Guarantee exposure: 50% of loan value
• Effective date: July 2022

Deal Summary

AGRI3 is supporting the mobilisation of USD 13.5 m from Rabobank for a soy, cotton and corn farm, which produces vegetables, soybean and maize in Brazil.

The loan is being used to finance the transformation of degraded land at the second production site. The land is being transformed into highly intensive and productive crop land, whilst maintaining over 50% of the area as forest and natural vegetation. Financing is used for land preparation, nature restoration, input purchase, machinery & equipment, infrastructure and irrigation systems that are required for the new farm.

The farm is developing educational programs to raise awareness for students in local schools. A research station is also being established to test new cultivars, hybrids and farming techniques more suitable to the project.

Impact Rationale

The loan is supporting the farm to protect and restore 2,325 ha of Legal Reserve Forest and Permanent Protection Area (APP). The inclusion of 2,000 ha of forest/savannah areas beyond those required by the forest code, is a large additionality of the project.

4,187 ha of former pastureland is set to be renovated and another 4,187 ha of degraded pasture is targeted to be converted into high yield soybean and corn seed production, onions and potato crops. Production on this land is expected to be conducted in line with sustainable certification standards.

The farm’s expansion is also expected to create local jobs, increasing incomes and training employees on new production techniques.  

Impact Targets

Sustainable Agriculture

4,187 ha of former pastureland renovated

Forest Protection

2,325 ha of Legal Reserve Forest and APP protected and restored