The Certificate of Agribusiness Receivables (CRA) is a title backed by agribusiness credit, created by the government to encourage the financing of the chain of production. Issued by securitization companies and sold to investors in the capital market. Octante was the first company to carry out this type of operation in Brazil.
The first public issue of a CRA registered by Instruction CVM 400 law occurred in 2012, in partnership with Syngenta and Bunge was structured and carried out by Octante. Currently, Octante is known for leading structured CRA issues in the country, with a total market share of 85%.
The CRAs liabilities must be related to agricultural production, marketing, processing or industrialization of products, machines and implements used in the agricultural sector, represented, for example, through the following titles:
Physical CPR with purchase and sale contracts
Issued by farmers or distributors, it is equivalent to the promise of delivery of agricultural products.
Issued by rural producers, equivalent to the promise of payment in cash, may or may not have a product pledge.
The Agribusiness Credit Rights Certificate (CDCA) is a registered non-negotiable credit instrument, representing a promise of cash payment issued based on credit rights originating from business between rural producers, their cooperatives or third parties, including financing or loans. These activities are related to the production, commercialization, processing or industrialization of products, agricultural inputs or machinery and implements used in agricultural production. It makes financing of the agribusiness chain with private resources possible.
CDA is a commodity stock and WA, in turn, is a credit instrument that gives the right to pledge on the merchandise described in the CDA.
Title of forward sale of products related to agribusiness, issued by producers who have commercial relations with agricultural distributors.
Debt securities issued by corporations, including those related to agribusiness activity.
NCE and others
Securities linked to the exportation of products from the agribusiness chain.
The issuance of CRA can be used as a financial instrument. Among its advantages are:
1. Derivation of credit risk
2. Visibility in the capital market
3. Down payment of receivables
4. Financing through off-balance sheet structures
5. Financing of customers, inventories, hedging transactions, inputs, equipment, etc.
6. Financing for more than one crop (revolving funds structure)
Immersion: Analysis & Opportunities Company, customers, distributors, producers
Structuring the Offer
Negotiation, hiring of services providers, definition of terms, documentation, and credit approval
Training, workshops, marketing, visits, other assists
Materials, meetings, Bookbuilding
Accounting registration, disclosure, CVM requirements, amortizations, monitoring, revolving asset funds and document management.