IFACC 2023 Market Report

Closing date: 1st tranche in August 2022 and 2nd tranche in October 2023 Disbursed amount: In 2023, US$ 36.2 MM considering the expansion of the original tranche launched in 2022 that accounted for US$ 11 MM (US$ 47.2 MM in total) Partners: Sustainable Investment Management (SIM), OPEA, Traive, and Investors: AGRI3, Rabobank, and Santander, being previously invested in 2022 by UK Retail Supermarkets (Tesco, Sainsbury, and Waitrose) Overview: Securitized agricultural receivables to provide low-interest annual loans to 122 soy farms in the Cerrado committed to protect their forest cover beyond the legal requirements in Brazil. Structure and terms: Dollar-denominated Certificates of Agricultural Receivables (“CRAs”) registered in the Vienna stock exchange were issued to finance soy producers in the Cerrado, offering one-year loans with interest rate reductions of approximately 20%. Expected impact: The program has funded farmers who have forest cover beyond the legal requirements and will thereby conserve 11,300 hectares of this surplus legal reserve and over 43,400 hectares overall (including the areas legally required to be protected) and this number is expected to grow by 10x by 2025. The program is conserving carbon stocks (21.0-million-ton CO2e, potentially growing 9x by 2025) and biodiversity while supporting the production of deforestation and conversion-free soy (having produced 42,000 tons of DCF soy on its first main crop season). So far, the program has achieved zero deforestation or conversion of native vegetation and zero financial default on repayment of loans. Scale opportunities: The facility intends to scale new tranches in the future, working with the corporate supply chain companies from the retail sector that financed the first phase as well as a broader set of commercial investors.5. RESPONSIBLE COMMODITIES FACILITY – CERRADO PROGRAMME FUND Cerrado ifacc 2023 USD 36.2 MM2022 USD 11 MM 23 IFACC 2023 MARKET REPORT