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Note: Brazil's Ecoagro has placed a landmark securitisation of agricultural receivables for soy producers and is aiming to find a suitable structure for foreign participation and the export market.
Issuer: Ecoagro
Lead Coordinator: Banco Fator
Custodian: Citibank
Registering Agent: CETIP
Rating Agency: LF Rating, Standard & Poor's
Monitoring: Cotecna
Legal Adviser: Barbosa, Mussinich & Aragao Advogados
Offtaker: ADM
Logistics Operator: NPKTrans Logistica em Agronegocios
Real Estate Appraisal: Setape
Fiduciary Agent: SLW
Eco Securitizadora de Direitos Creditorios do Agronegocio (Ecoagro) has placed the first securitisation of agricultural receivables for soya producers (hereon known by its Portuguese acronym, CRA). This landmark transaction provided financing for eight soya producers within the central west region of Brazil and finances the cultivation of 14,455 hectares of soya (which should yield approximately 900,000 sacks).
The R$17.3 million ($10.2 million) transaction was designed to both meet the financing requirements of soya producers and to provide a secure and well-structured method for private investors to provide this finance. The timeline and tenor of the transaction was designed around a single soya harvest, with funds being released in time for the producers to purchase their...