SINGAPORE – Agrocorp International, FMO, the Dutch entrepreneurial development bank, and Rabobank have signed a $ 50 million sustainable borrowing base facility.
“We are pleased to have finalized this installation with FMO and Rabobank and are confident that it will be an important stepping stone for further growth and cooperation,” said Vijay Iyengar, President and CEO of Agrocorp. “It is particularly commendable that this facility has been closed during these troubled times and we are grateful for the trust Rabobank and FMO have placed in us. We are also excited about the sustainability commitments and are well positioned to meet them, not only for the ready part of the installation, but even more so because sustainability is an important focus area for the company. “
The new loan from FMO and Rabobank is Agrocorp’s first basic borrowing facility. The facility is divided into two equal tranches with FMO covering prepayments and Rabobank inventories and financing receivables. Rabobank will also assume the role of settlement agent. As part of the installation, Agrocorp will work with a consulting firm, Earth Systems, to define and monitor sustainability goals and reporting requirements. Agrocorp will also work with FMO to set up farmer training programs in markets such as Myanmar where it has a strong presence.
The overall objective of the loan is to improve food supply chains in developing markets. As a global supply chain company, Agrocorp has worked to keep the flow of food going during the global coronavirus pandemic (COVID-19), particularly when lockdown measures caused food insecurities and increases of price.
Over the past month, the company said it has stepped up efforts to run its business through blockchain solutions that digitize trade documents, to ensure that intercontinental agricultural trade can take place when flights and services from messaging is interrupted.
“We are delighted to have the opportunity to work with Agrocorp and FMO, two very reputable companies,” said Harjan Kuiper, CEO of Rabobank Singapore. “This new working capital facility will allow the client to build a more sustainable food supply chain in emerging countries. Even more at times like these, when food supply chains are challenged, access to capital is essential. As the world’s leading food and agrifood bank, this facility fits perfectly with our cooperative mission to “build a better world together”. Our knowledge, network and financial product offerings allow us to further encourage our customers to implement a more sustainable food supply chain.
Agrocorp International is a Singapore-based supply chain company specializing in agricultural products and food products such as wheat, soybeans, cotton, legumes, edible nuts, rice and sugar. It was launched in 1990 and has grown to process over 12 million tonnes of product.
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