Bayer launches financial program for Certificates of Agricultural Receivables in Brazil

Bayer, along with Octante Company, has structured a program of distribution of financing for distribution and rural producers through the emission of Certificates of Agricultural Receivables. This model allows that individuals invest their resources in one fixed low-risk income and good earnings, while producers receive credit with low interests.

"This type of investment is beneficial since it is exempt from income tax for individuals. Due to this reason, we are looking with more attention for the market of private credit,” explains Martha de Saí, associate director of Octante. In the first issue made by Bayer, the offer was of R$ 107 million with certificates, but the demand of investors was 37 times higher, nearly R$ 4 billion.

Bayer acts as Administrative Agency of certificates and is responsible to form ballast through the monitoring of crops and charge for eventual defaulted loans. “Our goal is to be on the side of farmers enabling the financing of innovative solutions that add value and high productivity until the 2017/2018 season,” affirms Bianca Paiva, Structured Operations manager at Bayer. The first project relied with the participation of 1,620 investors, of those 1,602 individual investors.

According to Bianca, the biggest challenge of the project is to understand the capital markets by producer and players of the farm business sector. “We want, each year, to adjust the structure to the different needs of farmers and distributors and make the certificates one of the major sources of financing to the sector,” says Martha about the future of the project. With Certificates of Agricultural Receivables, Bayer strengthens its commitment to be together with the farmers bringing more innovations in its products, but also services that help the sustainability of the national farm business.