Grupo Andre Maggi

completed

The project involves financing for Amaggi, a large Brazilian soybean producer, crusher, and exporter which will assist a growing export-oriented company located in a major soybean production area through the provision of pre-export finance with longer maturities not currently available in the market. The funds will be utilized to (i) increase permanent working capital; (ii) provide necessary liquidity levels to support the group''s increasing annual crop and grower pre-financing requirements; and (iii) help fund minor capital investments. The group has been playing a major role in the agricultural development of central west Brazil, not only as a supplier of agricultural credit to soybean producers but in improving logistics and transport (specifically the development of the free flowing riverine transport of soy beans on the Madeira River from Porto Velho to a deepwater port at Itacoatiara on the Amazon River) that have been a significant constraint to agricultural development in Mato Grosso. Soy production is being promoted by the Brazilian government and has become the dominant arable crop of Brazil’s center west. In part because of its rapid spread, some sectors of society have expressed concerns including among others, infrastructure development proposals that open up new areas of land, conversion of sensitive ecological habitats, production methods which are heavily mechanized and dependent on large scale agricultural operations and inputs, genetically modified soy, and variation in the capacity of States to monitor and enforce land-use planning.