Winnipeg, MB, January 04, 2024 – Ag Growth International Inc. (TSX: AFN) (“AGI” or the “Company”) is pleased to announce the completion of a new financing partnership structure amongst AGI Brazil, the Brazilian Development Bank (“BNDES”), and Opea Capital (“Opea”) to help Brazilian customers access the credit required to finance the purchase of AGI’s grain handling and storage equipment.
The parties have launched a credit rights investment fund (or “FIDC”) to fund grain storage equipment investments with favorable terms. This is a commonly used financing structure leveraged by a variety of industries throughout Brazil. The first series of the FIDC will be able to fund up to BRL 250 million (equivalent to approximately CAD $65 million) in equipment supplied by AGI Brazil.
“Brazil is a key market for AGI and a vital contributor to the supply of agricultural outputs globally,” commented Francisco Prado, VP Brazil for AGI. “Our focus is to promote efficiency across the overall Brazilian agriculture supply chain, from the farm where the grain is harvested, through the commercial system where the grain is transported, processed, and consumed. 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.”
“We expect that by providing financing resources with attractive costs and extended terms, the FIDC will contribute to accelerating investment in grain storage across Brazil, especially where current capacity is constrained or insufficient,” commented José Luis Gordon, BNDES Director of Productive Development, Innovation, and Foreign Trade. Natália Dias, BNDES Director of Capital Markets and Sustainable Finance added,
“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.”
AGI is a provider of the equipment and solutions required to support the efficient storage, transport, and processing of food globally. AGI has manufacturing facilities in Canada, the United States, Brazil, India, France, and Italy and distributes its product worldwide.
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