Agri3 Fund


Key Facts

  • Investee: Usina Açucareira São Manoel ‘São Manoel’
  • Lender: Rabobank
  • Location: São Paulo, Brazil
  • Transaction size: EUR 11.4 million 
  • Term: 10-year loan
  • Instrument: Maturity subordination guarantee
  • AGRI3 guarantee exposure: 40% of loan value
  • Main activities: Improvements in sustainable production; forest protection and restoration

Investee background

Usina Açucareira São Manoel ‘São Manoel’ was founded in 1949 in the city of São Manoel in São Paulo state. The company operates one central processing plant which processes sugarcane into:

The company is deemed to be one of the leading sustainable sugar mills in Brazil.

Thanks to its commitments to ESG monitoring and reporting, and leading position in Bonsucro certification.

The company has the potential to set an example in the industry and share best practices with other producers.

Transaction description

Rabobank providing a:

EUR 11.4 million

10 year loan to Sao Manoel

Supported by a 40% Maturity Subordination guarantee from AGRI3

This transaction aims to support São Manoel to expand their sustainable agricultural practices by improving productivity and reducing input usage across 52,000 ha of their farms.

This includes implementing high precision agriculture, integrated pest management 
and reducing use of fertilizers and pesticides.​

In addition, the project accelerates the companies compliance with the Forest Code, focusing on reforestation activities and workers livelihoods, through improvements in training.

Project activities and expected impacts

Forest protection

  • The project aims to restore 90 ha of forest by planting native species and active forest management.

Sustainable land use

  • The project will implement high precision agriculture and integrated pest management on 52,000 ha.
  • The gravity distribution of vinasse into fields as fertilizer will be improved and extended from 15,000 ha to 18,000 ha.
  • A reduction in fuel use in cane transport will be accomplished through road improvements which allow more efficient and larger vehicles to be used.

Rural livelihoods

  • The company plays an important role in providing employment and provides trainings to employees on high precision agriculture and integrated pest management.
  • The project will have indirect impact through the road maintenance done by São Manoel which improves access to markets and services for the ~260,000 people in the area where São Manoel operates.
  • In addition, the company supports a local beekeeper program which targets an estimated 250 people.

Project KPIs

AGRI3 KPIs Transaction targets
Natural forest under management for protection.
90 ha of forest land restored using a mix of 80 native species of the Biome.
Area of natural habitat under management for protection
Additional 540 ha of Legal Reserve needed under Forest Code.
GHG emissions reduced from changes to farm practices.
A reduction of transport fuel use/ ton cane or GHG emissions from cane transport compared to the 2018 baseline.
Agricultural area under sustainable management.
18,000 ha total with gravity fed vinasse. Compared to the baseline in 2018 which was 15,000.
Reduced use of fertilizer (because of substitution by vinasse). 7,000 tons per year reduction.
Implement high precision agriculture and integrated pest management on 52,000 ha.
Number of farmers trained in, and technology transferred for, best management practices in sustainable agriculture/forest protection.
1. Training in sustainable agriculture/ forest protection. Deliver a training plan with foreseen trainings (content of trainings) and hours of training foreseen over life of AGRI3 support.
2. Local farmer training on honey cultivation (sweet tomorrow). Minimum of 250 people, in at least 3 hours training sessions, focused only on “sweet tomorrow” action.
3. Employee training on improving technical skills related to farming, high precision agriculture or integrated pest management. Provide trainings to around 800 employees with a total of (at least) 2,000 trained hours.
Additional AGRI3 KPIs Transaction targets
Kilometres of roads improved.
At least 7,000 kilometres of road financed by AGRI3.