IFACC 2023 Market Report

Closing date: October 2022 Disbursed amount: US$ 20 MM Partners: AGRI3, Rabobank, Grupo Locks, IDH and ReNature Overview: Long-term Rabobank loan with a de-risking guarantee provided by AGRI3 to support Locks Group, a grain and cotton producer from the Mato Grosso State region, in their transition to a more regenerative, circular agriculture model (soy, corn, cotton, sorghum, other grains, and cattle). Structure and terms: Rabobank provided a 10-year loan facility of US$ 20 MM that was de-risked by US$ 8 MM (unfunded) risk participation from AGRI3, whereby AGRI3 will guarantee 100% of the last 3 years of the loan. Expected impact: The loan is expected to support the recovery of pastureland for agricultural production, improve soil health, and potentially increase yields and yield resilience. Investments include expanding the utilization of cotton by-products for animal feed, the recycling of animal manure into fertilizer, and other measures that will help reduce agrochemical application and water and energy usage. Scale opportunities: Demonstrating value in this deal is expected to mobilize increased in interest from farmers for similar practices and crowd in more commercial banks to finance sustainable farming systems in Brazil. The partners also plan to extend the approach to other commodities and market segments over the coming year.6. AGRI3 & RABOBANK – LOCKS GROUP SUSTAINABLE AGRICULTURE LENDING © TNCCerrado ifacc 2022 USD 20 MM 25 IFACC 2023 MARKET REPORT