Resale of inputs carries out first structured credit operation in RS

From this Monday (20/01) rural producers in the Southern Half of the state will have a new financing option. Reference Agroinsumos, based in Dom Pedrito, completed the first structured credit operation in the state. In this way, receivables issued by producers are transformed into negotiable securities on the financial market.

Receivables, such as CPR (Rural Producer's Note), Notes and Rural Debentures, will become negotiable when transferred to securities such as CRA (Agribusiness Receivables Certificate), which are liquid and can be launched on the financial market. This is a modern way to seek resources for financing the purchase of inputs, without using commercial banks. Funding is done directly, bringing the investor closer to the rural producer, with Reference Agroinsumos as the link in this transaction.

Among the motivations that led Reference Agroinsumos to carry out the operation, three are highlighted. The first is the partnership with the producer. Historically, the region has always had very low default rates, reaching close to zero. Losses in recent years due to climate problems ended up depriving many producers of access to traditional credit. The company believes in its customers and the relationship built over the years. Therefore, it has been looking for alternatives to enable the continuity of production.

The economic situation of the municipalities where it operates also motivated the action. The region is dependent on agribusiness. The drop in production, consequently, would shake the economy of these cities, being bad for everyone. Therefore, the search for alternatives that guarantee the maintenance of productivity. The company is aware that it is part of the process and has chosen to do its part to maintain the local economy.

And the third point is the evolution of the company's profile. By acting directly and openly in the financial market, Reference Agroinsumos qualifies itself to participate in a different atmosphere of business relations. It demonstrates to clients and partners differentiated managerial and organizational capabilities, which is necessary to operate in the financial market.

The Commercial Director of Reference Agroinsumos, Homero Quadros, remembers that the company already works in financing producers. However, these actions take place in partnership with multinational companies, which limits them to certain product groups. “This led us to do the CRA. We want to provide producers with a greater variety of inputs. We started in 2006, and our location is very good, the track record has always been excellent, which gives us security for the operation”, he assesses.

In addition to its headquarters in Dom Pedrito, the company has undergone expansion in the last three years, opening branches in Rosário do Sul, Bagé, Pelotas, Cachoeira do Sul and Santa Maria. In April 2020, a store will be opened in Alegrete. “In 2020 we will operate in a large part of the southern half of the state”, says the businessman.

In total, Reference Agroinsumos serves 43 municipalities in the region in a potential market of 440 thousand hectares of rice and 1,1 million hectares of soybeans. The construction of the structured credit operation by Reference Agroinsumos took place with the assistance of Agromoney – Assessoria Econômica together with Ecoagro Securitizadora de Direito Creditórios.