IFACC 2023 Market Report

Closing date: Initiative launched and first transaction closed in 2022 Disbursed amount: US$ 3.9 MM disbursed thus far. Partners: AGRI3, Rabobank and IDH Overview: Initiative offering a standardized package of long-term loans and technical assistance to cattle producers in the Cerrado and Amazon regions for the restoration of degraded pasturelands and to accelerate the protection and restoration of critical forest ecosystems. It combines the initiative partners’ capacities in the provision of rural credit, long-term credit guarantees, and technical advisory in agricultural production, with native vegetation protection and restoration. Structure and terms: Long-term loans of up to 10 years with 3 years grace provided by Rabobank to middle to large cattle farmers. These loans are supported by partial guarantees from AGRI3 of up to 40% in years 1-3 and gradually increase to 100% in years 7-10. This structure enables the bank to extend its financing tenor and support non-cash-generating activities, such as forest conservation and technical assistance (provided by IDH). Expected impact: Restoration of degraded pastureland to sustainably intensify cattle ranching and reduce pressure on expansion over native vegetation. Accelerate compliance with the forest code,improving conservation and restoration of forest areas on cattle farms. It also supports the improve rural livelihoods through increased technical capacity and assistance. Scale opportunities: A replicable model for eligible Rabobank clients. The partners also plan to extend the approach to other commodities and market segments over the coming year.8. AGRI3 & RABOBANK - RENOVA PASTO © André DibCerrado ifacc 2022 USD 3.9 MM 29 IFACC 2023 MARKET REPORT