IFACC 2023 Market Report

Closing date: July 2022 Disbursed amount: US$ 13 MM Partners: AGRI3, Rabobank, an stablished agricultural producer and a trader of grains Overview: Long-term loan with a partial de-risking guarantee to fund the conversion of degraded pastureland area for agricultural production in the State of Goiás into a new production site with substantial restoration and conservation of native vegetation as well as the implementation of modern sustainable production techniques. Structure and terms: 10-year loan agreement with Rabobank Brazil, being partially guaranteed by the AGRI3 Fund, covering 50% of the amount (US$ 6.5 MM) and increasing to 100% of the risk as of year 7 of the loan, when Rabobank exposure is fully repaid. The use of proceeds will be directed to the adoption of farming best practices for conversion of degraded pastureland into crop production areas (investing in input purchase, machinery & equipment) and restoration practices. Expected impact: New 8,000 hectares farm being set up in areas that were formerly occupied by degraded pastures and that have a low productive capacity. Protection and restoration of 1 hectare of native vegetation for every hectare used for crop production, resulting in a surplus legal reserve of twice as large as legally required (50% instead of 20%). The transaction will also foster nearly 200 additional jobs at the site, improving significantly rural livelihoods in an area where permanent, good-quality jobs are scarce. The project is also committed to developing education environmental activities at four schools in the region. Scale opportunities: The transaction strongly supports AGRI3’s ambition and the sustainable intensification of agricultural production on already cleared, degraded land while restoring and protecting remaining forest reserves, which are considered essential elements of alleviating expansion pressure from agricultural production in Brazil.3. AGRI3 RESTORATION OF DEGRADED PASTURELAND LOAN © RCFCerrado ifacc 2022 USD 13 MM 19 IFACC 2023 MARKET REPORT