financing solutions for agriculture · 2018-06-13 · page 2 tailor-made financing solutions our...

FINANCING SOLUTIONS FOR AGRICULTURE

LATIN AMERICA

“We provide companies in the agricul tural sector with the debt and private equity capital financing they need to grow their business.”

Gaëlle Bonnieux

Head Agriculture Debt Financing

TAILOR-MADE FINANCING SOLUTIONS

OUR OFFERING responsAbility is a leading financing partner in the sustainable agriculture sector in developing economies. Through our managed funds we offer customised debt and equity financing covering the diverse needs of actors along the agricultural value chain that improve livelihoods in rural areas. By helping clients to increase productivity, gain access to higher-paying markets and achieve more balanced trading relations, responsAbility managed funds maximise their development impact while optimally capturing investment opportunities.

SERVICES • Short term financing, to finance inventory and receivables,

pre export and export• Long term financing, to finance the purchase or

construction of property, plan and equipment• Sub-debt financing• Equity financing• Technical Assistance

CLIENT BENEFITS

Tailor made solutions adapted to your business model

Increasing amounts to help you grow your business

Ability to provide long term solutions for capex

A dedicated team of experts recognised for its attentiveness, proximity and ability to react quickly to client needs

Eligibility for investment includes the following criteria: • Contribute to economic development of low income

population in rural areas through productivity improvement and access to market

• Sustainable business models within the agricultural value chain

• A clear commitment to environmental and social criteria • Annual financial reports audited by a reputable company

(last 3 years) • Ability to provide annual financial projections

TERMS & CONDITIONS

Working capital Long term financing

Purpose Financing of inventory, receivables advances to suppliers

Construction or acquisition of land, property, equipment

Amounts Minimum 1 million USD Minimum 1 million USD

Tenor Up to 12 months Up to 7 years

Currency USD, EUR USD, EUR

Interest rate Market rates Market rates

Collateral • Sales contract assignment• Floating charge on assets• Collateral management agreement• Guarantee mechanisms

• Pledge on fixed assets• Pledge on loan portfolio• Trust agreement

A GLOBAL PLAYER ACROSS THREE SECTORS

responsAbility Investments AG is one of the world’s leading asset managers in the field of development investments. The company’s investment solutions supply debt and equity financing to companies in emerging and developing economies.

RESPONSABILITY FOCUSES ON THREE INVESTMENT SECTORS: Agriculture, financial services and energy, and on companies with inclusive business models that help to meet the basic needs of broad sections of the population and to drive economic development – leading to greater prosperity in the long term.

responsAbility has over USD 3 billion of assets under management, invested in more than 560 companies across 96 countries. Founded in 2003, the company is headquartered in Zurich and has local offices in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. Its shareholders include a number of reputable institutions in the Swiss financial market as well as its own employees. responsAbility is registered with the Swiss Financial Market Supervisory Authority FINMA.

Coffee Nuts Cereals Fruits Vegetables Cocoa Seeds

AGRICULTURE FINANCING ACROSS 44 COUNTRIES AND 56 COMMODITIES

more than 3 % 1 – 3 % less than 1 % %

Investment volume per countryas of 29.09.2017

Investment volume per regionin % of total, as of 29.09.2017

OTHER18.3%

CENTRAL ASIA 5.9 %EUROPE

1.0 %

MIDDLE EAST & NORTH AFRICA

7.6 %

LATIN AMERICA 31.9 %

ASIA-PACIFIC 20.9 %

SUB-SAHARAN AFRICA 14.4 %

FINANCING YOUR GROWTH

SOLUTIONS FOR COMPANIES ALONG THE ENTIRE VALUE CHAIN

Faced with changing market requirements reflecting increasing demand, shifts in diets and international product standards, actors along the agricultural value chain need flexible financing suited to their specific needs to address emerging challenges, leverage new opportunities and successfully grow their business.

Financing solutions are adapted to the different requirements of companies along the agricultural value chain, including

• pre-harvest financing• export-related financing• asset financing• project finance• mortgage financing

Our partners can choose from financing solutions with different maturities, innovative and flexible collateral structures, currency hedging and transparent terms and pricing structures.

We grow with our clients. Where required, we also offer technical assistance and advisory services, for example, in relation to business plans or structuring capital.

Exporter

responsAbility(Switzerland)

Buyer(Europe, USA etc.)

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EXAMPLE OF EXPORT SALES CONTRACT ASSIGNMENT

• Input providers• Equipment providers

• Farms• Producer organizations

• Processors• Warehousing• Transport• Packaging services

• Traders• Retailers

Increase yieldsand quality

Short term financing:Financing of inventory, receivables advancesto suppliers.

Long term financing:Construction or aquisition of land,property and equipment.

Boosttrade

Fair accessto market

responsAbilitymanaged funds

FinancialInstitutions

ProducersProduction factors

Processing & Logistics

Distribution & Retail

HOW TO OBTAIN FINANCING

Review of financial and corporate information to confirm eligibility

Due diligence including inspection of facilities and meetings with the management

Investment Committee decision

Final negotiations and signing of legal documentation

Disbursement to the counterparty

Ongoing monitoring and assistance

We select investments based on a tried and tested approach that enables us to respond to your financing needs in a quick, efficient and flexible way.

Our experienced team of dedicated local experts can complete the financing process within 6 – 8 weeks. Drawing on their deep understanding of local markets and commodities, they can cater to individual requirements and ensure that we provide a stable source of financing that helps to diversify our partners’ borrowing profile.

Our investment officers and transaction managers maintain close relationships with our counterparties at all times to anticipate and respond quickly to any arising needs or difficulties.

FINANCING WITH IMPACT

responsAbility managed investments along the agricultural value chain are guided by a focus on several key impacts benefiting its investees and their communities as income gains for farmers translate into improved livelihoods, growth and employment and reduced environmental impacts.

PRODUCTION FACTORS & PRODUCTIONAgricultural finance can help producers achieve higher and more stable incomes through improved productivity and soil fertility as well as reduced vulnerability to external shocks like pests, diseases and drought. Thanks to the cash cushion provided by responsAbility managed funds, farmers do not have to sell their produce immediately after harvesting, when prices are lowest, but can negotiate better prices with buyers.

PROCESSING & LOGISTICSBy supporting organisations involved in processing, packaging, transport, or storage, agricultural finance helps to add value to raw agricultural products, thus raising the prices that local farmers receive. It can enhance the efficiency of supply chains, by optimising the use of natural resources, such as agricultural land and water, and reducing energy and food waste, thereby mitigating negative environmental impacts. It can also create new employment opportunities by enabling the development of distribution networks.

DISTRIBUTION & RETAILAgricultural finance helps producers gain better access to markets by financing traders. Traders also help suppliers to better match demand by keeping track of changing consumer preferences, market conditions, standards and regulations, and to tap more secure and higher-paying markets.

“TERRAFERTIL, DRIED FRUITS EXPORTER, COLOMBIA”

“We have made significant in-vestments in our equipment to pave the way for our fu-ture growth, to strengthen our brands and to tap new mar-kets. The financing support we receive from responsAbility is tailored exactly to our needs as we work to increase and real-ise the growth targets for our production facilities in several countries.”

David Bermeo,

CEO and founder of Terrafertil, Colombia

David Bermeo, CEO and founder of Terrafertil, Colombia (left)

Mauricio Jibaja, Regional Head – Agriculture Debt Financing, responsAbility Investment AG

(right)

YOUR REGIONAL PARTNER

LATIN AMERICA

ABOUT THE REGIONresponsAbility has been operating in Latin America since 2012, providing financing to companies in 12 countries and along the value chain of more than 23 different commodities. Our local team has extensive experience in and strong knowledge of Latin American markets with a special focus on the Andean countries and the coffee, cocoa and fresh fruits markets.

“We embrace the challenge of covering the specific financing gaps our partners might face by providing tailor-made financing solutions to drive their growth.”

Mauricio Jibaja,

Regional Head – Agriculture Debt Financing

12COUNTRIES

USD 575 MINVESTED VOLUME

49COUNTERPARTIES

responsAbility managed funds invest in cooperatives and agriculture SMEs active along the entire agricultural value chain that create formal jobs in the region and have sustainable agriculture and labour practices. Our growing portfolio in Latin America includes both short and long-term deals. Our strong relationships with upstream and downstream partners give us detailed insight into our clients’ operations and market developments as they unfold.

23COMMODITIES

YOUR REGIONAL TEAM

LATIN AMERICA

Mauricio Jibaja Regional Head – Agriculture Debt FinancingEmail: mauricio.jibaja@ responsAbility.com

Expertise:• Over 10 years’ experience in analysing and

structuring short and long-term debt financing for SMEs, including 5 years with agricultural companies in Latin America

• Special expertise in restructuring, CAPEX and project finance for companies across the agricultural value chain

• Strong skills and experience in negotiating with different stakeholders and counterparties

Jorge Cerna Investment Officer – Agriculture Debt FinancingEmail: [email protected]

Expertise:• Expertise in corporate finance with more than

7 years’ experience in banking with a focus on deal structuring, project finance and investment advisory

• Experience in and focus on banana, cocoa, coffee and quinoa

Katherine Montalvo Investment Officer – Agriculture Debt FinancingEmail: [email protected]

Expertise:• Strong financial analysis skills and deep knowledge of

coffee and cocoa crops and markets, including risk management in price fixing and fundamental price analysis

• 5 years experience in financing agribusiness companies across Latin America

• Strong knowledge in product certifications (fair trade, organic, Rainforest Alliance, etc.)

Gerardo Graña Investment Officer – Agriculture Debt FinancingEmail: [email protected]

Expertise: • Experience in credit structuring for agribusiness including

business and credit risk analysis, financial modeling, trend research

• Experience in restructuring, CAPEX and project finance• Special know-how in commodities such as grapes, avocado,

asparagus, mango, pomegranate, blueberries, quinoa, chia and sesame

Noemy Leiva Investment Consultant – Agriculture Debt FinancingEmail: [email protected]

Expertise:• Over 10 years’ experience in financing coffee cooperatives

in Central America• Deep knowledge of the coffee market, including risk

management in price fixing and fundamental price analysis

• Experience in the registration of collaterals in Central America

Legal disclaimerThis information material was produced by responsAbility Investments AG and/or its affiliates with the greatest of care and to the best of its knowledge and belief. However, responsAbility Investments AG provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this information material are those of responsAbility Investments AG at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are unaudited. This information material is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or services and does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is in line with his/her own circum-stances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This information material may not be reproduced either in part or in full without the written permission of responsAbility. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this information material nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person. Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor’s reference currency. It should be noted that historical returns and financial market scenar-ios are no guarantee of future performance.

Copyright © 2017, responsAbility Investments AG. All rights reserved.

responsAbility Investments AGJosefstrasse 59, 8005 Zurich, SwitzerlandPhone +41 44 250 99 30, Fax +41 44 250 99 31www.responsAbility.com

financing solutions for agriculture · 2018-06-13 · page 2 tailor-made financing solutions our...

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