AGI forges strategic financing partnership in Brazil
BRAZIL – Ag Growth International Inc. (AGI) has recently collaborated with AGI Brazil, the Brazilian Development Bank (BNDES), and Opea Capital to create a financing partnership structure.
This partnership aims to help Brazilian customers acquire credit for purchasing AGI’s advanced grain handling and storage equipment with ease.
The trio has introduced a credit rights investment fund, commonly referred to as FIDC, to support investments in grain storage equipment with favorable terms.
This financing structure, widely utilized across various industries in Brazil, is expected to have a significant impact on AGI’s operations.
The inaugural series of the FIDC is capable of funding up to BRL 250 million (US$51.15 million) for equipment supplied by AGI Brazil.
AGI recognizes Brazil as a crucial market and a key contributor to global agricultural outputs. Francisco Prado, VP Brazil for AGI, emphasized the company’s commitment to enhancing efficiency throughout the Brazilian agriculture supply chain.
Prado stated, “Our grain storage and handling products are critical to ensuring valuable crops are protected, and the FIDC will enable AGI to accelerate the sales of these products to our valued customers.”
The financing initiative is expected to play a pivotal role in fostering investment in grain storage across Brazil, particularly in regions where current capacity is constrained or insufficient.
José Luis Gordon, BNDES Director of Productive Development, Innovation, and Foreign Trade, highlighted the potential impact, stating, “By providing financing resources with attractive costs and extended terms, the FIDC will contribute to accelerating investment in grain storage across Brazil.”
Natália Dias, BNDES Director of Capital Markets and Sustainable Finance, underscored the alignment of the FIDC with BNDES’ strategic priorities.
She mentioned, “This FIDC is aligned with one of the priorities in BNDES’ strategy for the coming years, which is to expand and diversify our funding distribution channels. This includes a focus on increasing the reach of the bank’s resources and expanding the number of small and medium enterprises we service.”
The collaboration reflects a shared commitment to advancing agricultural infrastructure in Brazil, with AGI at the forefront of providing innovative solutions to meet the evolving needs of the industry.
AGI is a provider of the equipment and solutions required to support the efficient storage, transport, and processing of food globally, with manufacturing facilities in Canada, the United States, Brazil, India, France, and Italy.
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