Rizoma Agro is a large organic farm operator in Brazil. They operate 2 farms with a total area of 1,200 hectares, and a grain silo, in the state of Sao Paolo. They are the largest grower of organic grains in Brazil and they export to the Europe and North American markets.
EcoAgro was set up in 2007 to structure financial transactions to help the agribusiness sector in Brazil. They issue Agribusiness Receivables Certificate (CRA), an agriculture related securitisation product regulated by the Brazil SEC (“CVM”).
The CRA is backed by a Cédula de Produtor Rural Financeira (CPR-F) issued by Rizoma Agricultura. Ecoagro transfers the funds raised by the securitisation to Rizoma. This structure gives Rizoma access to the capital markets.
This is the first verification conducted by Bureau Veritas Brazil, and also the first Certification with the Agriculture Criteria.
The proceeds will be used to finance the issuer’s expenditures which fall under the following sections of the Agriculture Criteria:
3.1 Agricultural Production Unit
3.2 Specific Intervention within Agricultural Production Unit
The specific projects include expenditure on crop inputs, crop cultivation and processing, crop machinery, expansion of the silo capacity, and a few other activities.
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DATE OF ISSUE |
TENOR | TYPE OF INSTRUMENT |
SIZE |
COUNTRY OF ISSUE |
CLIMATE BONDS SECTOR CRITERIA |
VERIFIER'S REPORT |
ANNUAL REPORT | FURTHER INFORMATION |
| August 2020 | 7 years | Agribusiness Receivables Certificate (CRA) | BRL 25 million (USD 4.5 million) | Brazil |
Agriculture |
pre issuance verification |
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Presentation deck (in Portuguese) |