By Leonardo Gottems, Reporter for Agropages
Rotam CropScience raised R$19.149 million during its capital market debut with the issuance of Agribusiness Receivables Certificates (CRA). The transaction was structured by VERT as a securitizer, with an expected maturity of three years and two months, without rating or credit insurance. The distribution of roles also saw XP Investimentos as the lead coordinator.
CRAs are receivables-backed fixed-income securities covering financing or borrowing related to the production, marketing, processing or industrialization of products, agricultural inputs or machinery and implements used in agricultural production. During these operations, companies assign their receivables to a securitizer, which will issue the CRAs and make them available for trading in the capital market, usually with the help of a financial institution. Finally, the securitizer will pay the company for the assigned receivables, allowing the company to anticipate the receipt of its receivables.
Rotam's receivables, assigned to VERT, were packaged and offered to investors in two series: senior, with a yield of CDI + 2.5% a.a., and Mezanino A, with a yield of CDI + 8%. The company itself subscribed to the subordinate quota. “This first issue was a test that brought us a lot of learning. Our goal is to recapture soon and with new structures,” said Andreza Percechitto, Rotam's finance and accounting manager.
The option for CRA, she said, came from a global strategic alignment of the company—reducing the time to gain sales without shortening the time offered to customers. “This is very important, especially in Brazil, where the industry is a strong financing agent for farmers,” added Rotam's finance manager.
According to VERT's partner, Felipe Rogado, the trend for companies with Rotam's profile is to start with a smaller volume and increase it in subsequent operations. “Certainly, the company's next CRA will be bigger. The market gets to know and trust the business more, which facilitates the placement of papers,” he said.
CRA Rotam did not have credit insurance or risk rating by rating agencies. “Among other reasons, I believe it was possible because we already have a strong level of governance with developed compliance, and we are committed to the transparency expected by the market,” said Percechitto.