Key Takeaways:
- AGI completes a new financing partnership with BNDES and Opea Capital to support Brazilian agriculture.
- A credit rights investment fund (FIDC) has been launched to fund up to BRL 250 million in grain storage equipment.
- The partnership promotes efficiency and investment in Brazil’s agricultural supply chain.
- BNDES emphasizes the alignment of the FIDC with strategic goals to expand funding channels and support more SMEs.
Ag Growth International’s Novel Financing Partnership Structure
Ag Growth International Inc. (TSX: AFN), commonly known as AGI, is proud to announce the successful establishment of a novel financing partnership structure. This collaboration involves AGI Brazil, the Brazilian Development Bank (BNDES), and Opea Capital (Opea). It aims to facilitate Brazilian customers’ access to credit for purchasing AGI’s grain handling and storage equipment.
Fostering Agricultural Development with Innovative Financing
The partnership has initiated a credit rights investment fund (FIDC) tailored to fund investments in grain storage equipment with favorable terms. This structure is not new to Brazil; various industries commonly utilize it. The first series of the FIDC is poised to fund up to BRL 250 million, approximately CAD 65 million, in equipment supplied by AGI Brazil.
Francisco Prado, VP of Brazil for AGI, remarked on the significance of Brazil in the global agricultural landscape and AGI’s role in enhancing efficiency across the Brazilian agriculture supply chain. He emphasized that AGI’s products are crucial in safeguarding valuable crops, and the FIDC will enable AGI to expedite the sales of these vital products to their customers.
Strategic Alignment and Market Impact
José Luis Gordon, BNDES Director of Productive Development, Innovation, and Foreign Trade, expressed optimism about the FIDC’s potential to accelerate grain storage investment across Brazil, especially in areas with constrained or insufficient capacity. Natália Dias, BNDES Director of Capital Markets and Sustainable Finance, added that the FIDC is aligned with BNDES’s strategic priorities for the coming years. These include expanding and diversifying funding distribution channels, increasing the reach of the bank’s resources, and extending support to a significant number of small and medium enterprises (SMEs).
