Welcome to SJGLE.com! |Register for free|log in
Welcome to SJGLE.com! |Register for free|log in
Related Searches: Tea Vitamin Nutrients Ingredients paper cup packing
Agrocorp International, a Singapore-headquartered integrated agricultural commodity and food solutions provider, has received a US$50 million sustainable borrowing base facility from Dutch development bank FMO and Rabobank to enhance food supply chains in developing markets. The facility is pegged as a fruitful development given the current COVID-19 pandemic, which has challenged global food supply chains, especially in developing markets impacted with reduced food production and rising prices.
“In order to ensure a continuous flow of food from farmers to end-consumers, the role of the commodity merchants has become more important than ever,” Rabobank affirms.
“We’re delighted to have the opportunity to work with Agrocorp and FMO, both highly reputable firms. This new working capital facility will enable the client to implement a more sustainable food supply chain in emerging countries. Even more so in times like these, wher food supply chains are challenged, access to capital is critical,” stresses Harjan Kuiper, CEO of Rabobank Singapore.
Agrocorp is a global supply chain company specialized in various agricultural commodities such as pulses, wheat, rice, oilseeds, sugar and nuts. The company has operations in over 20 countries. In 2019, the company moved more than 12 million tons of goods between cultivation centers such as Australia, Canada, the US, Ukraine, Myanmar and West Africa, primarily into population rich consumption centers in Asia and the Middle East such as Bangladesh, India, China, Turkey, Indonesia and Vietnam.
“Agrocorp is a natural partner for FMO due to its strong and growing presence in fast developing economies including India, Myanmar, Turkey and Bangladesh. Sustainability is also a priority for the company given its market leadership positions in pulses and plant proteins, the consumption of both of which is seen as an important gateway towards a more environmentally friendly food system,” says Linda Broekhuizen, Chief Investment Officer at FMO.
Crucial in ensuring food supply chain security
Over the past month, Agrocorp has increased its efforts to execute business via blockchain solutions that digitized trade documents, hence ensuring intercontinental agricultural trade could take place with flights and courier services upended. During these uncertain times, blockchain has been spotlighted as an effective tool in ensuring smooth trade for the agri-food sector. Last month, the Asia-Pacific (APAC) Provenance Council was established to integrate blockchain technology into the food supply chain finance in Australia-China trades.
The new loan by FMO and Rabobank is Agrocorp’s first borrowing base facility. The facility is split into two equal tranches with FMO covering prepayments and inventory and Rabobank financing receivables. Rabobank will also take on the role of the facility agent. As part of the facility, Agrocorp will be working with a consultancy firm, Earth Systems, to set and monitor sustainability targets and reporting requirements. Agrocorp will also be working with FMO to establish farmer training programs in markets, such as Myanmar, wher it has a strong presence.
“We are happy to have finalized this facility with FMO and Rabobank and are confident that this will be an important stepping stone to further growth and cooperation. It is especially commendable that this facility was closed during these turbulent times and we are grateful for the trust that both Rabobank and FMO have placed in us,” says Vijay Iyengar, Agrocorp’s Chairman and Managing Director.
“We’re also excited about the sustainability covenants and are well placed to meet them, not just for the lending part of the facility, but more so because sustainability is an important focus area for the company,” he concludes.
E-newsletter
Tags