Brazil ยท Agricultural exports
An established grain exporter needed to fund harvest costs and storage for several months before shipment, on a scale its domestic bank lines could not cover alone.
Local financing conditions had tightened, and the exporter's domestic bank had reduced its appetite for further seasonal facilities.
The exporter had firm forward sales contracts with two international buyers, but no financing structure in place to fund the gap between planting costs and shipment payment.
We structured the facility as an export prepayment against the forward sales contracts, with the international buyers themselves providing part of the funding in exchange for a discount on the contracted price.
A specialist trade finance fund with agricultural commodity experience was brought in alongside the buyer prepayment, splitting the exposure and improving overall pricing.
A USD 12m combined prepayment facility was arranged, funding the harvest and storage costs well ahead of the shipment date.
The exporter delivered both contracts on schedule and secured a similar structure for the following season without needing to restart the process from scratch.
Details are anonymised. Figures are rounded and identifying information is removed or altered to protect client confidentiality. Past transactions are not a guarantee of future outcomes.
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