Webinar debates improving the financing model for Brazilian agribusiness

The Investment Funds in Agroindustrial Production Chains (Fiagro) have already proven to play a fundamental role in improving the Brazilian agribusiness financing model. This is a conclusion of the debate held this Wednesday (26/10) with the participation of public sector authorities and private sector representatives in the webinar “Fiagro — evolution and challenges”, promoted by the Special Advisory for Economic Studies of the Ministry of Economy and by the Securities and Exchange Commission (CVM).

During the event, analyzes were presented on the current economic environment, regulations, legal regime and the evolution of funds.

According to the head of the Special Advisory for Economic Studies, Rogério Boueri, the official credit policy currently does not meet the need for financing national agribusiness, as public resources are limited, especially in a situation of fiscal restrictions, and simultaneously, there is constant growth of the sector, requiring a greater volume of credit. In view of this, he highlighted the relevance of Fiagro in the construction of new forms of financing agribusiness in the country, driven by private resources.

Boueri reinforced that the current macroeconomic environment increases the interest of private investors in opportunities in agribusiness. He also spoke about the importance of the initial regulation on Fiagro (CVM Resolution No. 39), which allowed experimenting with market behavior in relation to the new mechanism. He highlighted the need to advance discussions aimed at establishing a specific and definitive rule to regulate the constitution and operation of these funds (in a public hearing conducted by the CVM). The head of the Special Advisory for Economic Studies also recalled Fiagro's potential in attracting foreign investors.

The president of the CVM, João Pedro Nascimento, highlighted the need for the mechanism for the environmental agenda, in the construction of a green and digital future, and emphasized the evolution of discussions regarding “Low-carbon Fiagros”, focused on the allocation of resources in projects socially and environmentally responsible. Nascimento stated that the Fund represents an opportunity to use the capital market not only to promote the growth of agroindustry, but also to strengthen public policies, such as those on the environmental agenda.

During the event, the superintendents of CVM's Institutional Investor Supervision, Daniel Maeda, and the Commission's Securitization Supervision, Bruno de Freitas Gomes, presented analyzes of the resolutions on Fiagro, the public consultation on a new rule for the sector and the New Securitization Law (Law No. 14.430/2022). Renato Buranello, from VBSO Advogados, spoke about Fiagro as a new securitization mechanism.

What is Fiagro?

Fiagro is a new type of investment fund that seeks to provide targeted alternatives to encourage the agribusiness sector. It involves investment funds of a special nature, constituted in the form of open or closed condominiums that can invest in various assets – such as credit rights, real estate, securities, shares or shares in companies –, always in the context of activities that are part of the company's production chain. agroindustry.

According to the CVM, some of the benefits offered to investors who invest in Fiagro include the non-obligation to distribute to its shareholders 95% of the profits earned, calculated according to the cash basis, based on a balance sheet or semi-annual balance sheet; in addition to authorization for the deferred payment of income tax resulting from capital gains on shares paid in with rural property by an individual or legal entity.

Market

Data from the Brazilian Association of Financial and Capital Market Entities (Anbima) indicate that the number of Brazilians investing in Fiagros grew 26% from June to July this year. In July, these funds had 78.755 shareholders, compared to 62.601 in the previous month, following an upward movement since August 2021, when they began to raise funds in the market, with just 434 shareholders in three funds. The amount of funds available remained at 33 in July – the same number recorded in the previous month.

Together, the three categories of Fiagros – Credit Rights (FIDC), Real Estate (FII) and Participations (FIP) – recorded a 75% drop in net funding in the comparison between July (R$ 107,8 million) and June (R$ 431,2 .1,1 million). From January to July, positive net inflow totaled R$5,6 billion. These values ​​refer to the difference between contributions and redemptions. Net equity in July was R$11,68 billion, an increase of 5% compared to the R$XNUMX billion recorded in June.