German chemicals giant BASF said it raised BRL1.4 billion ($260 million) to finance the clients of its agriculture solutions division in Brazil through a securitization fund known as Fiagro.
The company raised the funds by selling investment receivables certificates through Brazilian structured credit firm Opea.
“Such structures were designed for BASF and do not represent additional debt load for the company, which is a great benefit as far as the fundraiser is concerned,” Renato Barros, Opea’s head of agrobusiness, told LatinFinance.
The proceeds will be used to provide financing for farmers, cooperatives and distributors to improve their business performances, BASF and Opea said in a joint press release.
“Securitization alternatives have been used by agribusiness companies as a strategy to increase the business potential of their clients,” Barros said.
Similar deals have been carried out by Brazilian fertilizer producer Cibra, which raised BRL150 million through Opea last month, and local biotech company Sinova.
Barros said Opea has BRL4.9 billion in assets under management, including BRL4.3 billion in agribusiness.
Itaú BBA led the latest transaction with BASF, while Pinheiro Neto was the legal advisor, according to the release.