BrasilAgro Considers Follow-On

Brazilian agricultural developer BrasilAgro could re-tap the equity markets with in the next 12 months, as funds raised in a 2004 IPO deplete. “We will, depending on conditions, likely approach the market in the next 12 months looking for more resources,” Carlos Aguiar, CFO, tells LatinFinance, noting the importance of attracting new investors. He says that over 90% of its funds are committed, and that BrasilAgro could raise BRL200m-BRL300m from such a sale. The developer – founded by Cresud, Tarpon Investment and Elie Horn – aims to complete the sale of at least one of its properties this year, which it has not yet done despite acquiring about 20,000 hectares. “This is not for lack of interested buyers,” Aguiar says. “We have an exit price for each one of our projects.” To issue more equity, BrasilAgro requires steady stock and commodity market conditions, as well as proof of at least one development at the targeted return. The developer, which diversifies by developing land for grains, sugar cane, livestock and forestry in different areas of the country, aims to get to 25,000-30,000 hectares within 12 months.