November 14, 2006

Agrenco raises US$100 million to finance Brazil soy, corn farmers

Global agribusiness group Agrenco has raised US$100 million on international markets via its financial subsidiary Finacom to provide pre-financing to credit-strapped Brazilian soy and corn farmers over the next three harvests, the company said Monday (Nov 13) in a press statement.

"The funds will be used principally in the pre-financing of the production of soy and corn in Brazil," said Antonneio Iafelice, the chief executive officer of Agrenco. "We decided to look for funds abroad because the money would come at a more competitive cost for the Brazilian farmer."

Deutsche Bank, from its office in the Netherlands, led the operation, added an Agrenco spokeswoman.

Roughly 10 foreign banks, from Asia as well as Western Europe, also participated in the operation, according to a report published in local Agencia Estado newswire.

The loan has a term of three years.

Agrenco, with headquarters in the Netherlands, is a global grain and oilseed trading company. The company created its Brazilian subsidiary in 2005, and this year expanded its Latin American operations to Argentina.

Agrenco also owns controlling shares in a grain export terminal, Terlogs, in Brazil's southern state of Santa Catarina.

In 2005, the company's revenues hit US$1.08 billion, of which US$450 million came from Brazilian trade. This year, the company expects revenues to reach US$1.5 billion.

Brazil is the world's no. 2 soy producer and exporter, after the US.