Key Takeaways
- Significant Financing Secured: Verde AgriTech Ltd has successfully secured 16.2 million Canadian Dollars (“C$“) – 60 million Brazilian Reals (“R$“) in debt financing from Banco do Brasil and Banco Bradesco, Brazil’s top two largest banks.
- Beneficial Terms: The new financing will replace existing high-interest debt and offers improved conditions, including 6-12 months of grace periods.
- Sustainability Recognition: Banco do Brasil’s loan to Verde is distinguished with a Sustainability Certificate, emphasizing the company’s commitment to sustainable practices and Brazil’s sustainable development.
- Potential Interest Savings: Due to declining SELIC interest rates, Verde could realize interest expense savings amounting to C$2.7 million (R$9.9 million) by the end of Q4 2026.
- Verde’s Impressive Profile: As an agricultural tech company, Verde AgriTech provides potash fertilizers and other sustainable solutions, positioning itself as Brazil’s largest potash producer by capacity in 2022.
Verde AgriTech Secures C$16.2 Million from Leading Brazilian Banks
Verde AgriTech Ltd (TSX: NPK) has successfully obtained C$16.2 million (R$60 million) in debt financing from Banco do Brasil and Banco Bradesco. These funds will allow the company to replace higher-interest debt with more favorable terms and provide financing solutions to its clients, fostering growth and stability.
By awarding a Sustainability Certificate, Banco has recognized the sustainability of Verde’s operations in Brazil. This certification is awarded to companies and projects that align with Brazil’s sustainable development goals, with a focus on environmentally positive practices.
A meticulous evaluation was undertaken for Verde to receive the Sustainability Certificate, ensuring the company’s commitment to best practices in governance, environmental conservation, and social considerations.
Verde’s Founder and CEO, Cristiano Veloso, commented on the financing, “We are encouraged to count on the backing of two of the largest banks in Latin America to support our growth. These two loans reflect significant confidence in our business and the partnership between Verde and these reputable institutions.”
The financing details are as follows:
- Banco do Brasil offers C$10.8 million (R$40 million) at an interest rate of CDI + 3.60%, spanning 36 months with a 12-month grace period.
- Banco Bradesco’s loan stands at C$5.4 million (R$20 million), with an interest rate of CDI + 3.61% over 24 months and a 6-month grace period.
From the total secured financing, C$9.5 million (R$35 million) will be dedicated to settling six existing loans.
Given Brazil’s recent downward trend in SELIC interest rates, Verde is poised to experience significant interest savings in the coming years. This proactive approach by the Central Bank of Brazil aims to stabilize the country’s economic conditions, benefiting businesses like Verde.
Banco do Brasil has been a cornerstone in Brazil’s financial history since 1808. Having won multiple awards for sustainability, the bank is committed to the nation’s socio-economic growth. Bradesco, established in 1943, offers a vast range of financial services and is known for its robustness, innovation, and commitment to sustainability.
Verde is a trailblazer in the agricultural technology sector, focusing on sustainable potash fertilizer production. With a range of proprietary technologies and an impressive mineral resource, the company caters to Brazil’s significant potash demand. In 2022, Verde marked its place as Brazil’s largest potash producer by capacity.
Image provided by Verde AgriTech
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