By Brazil Stock Guide – Rabobank Brasil has coordinated a roughly R$1 billion fundraising to expand credit for clients of Bayer’s agricultural division in Brazil, strengthening financing options for farmers, cooperatives and distributors tied to the country’s agribusiness sector.
The transaction was structured with two funding lines: R$700 million in local currency and US$50 million in dollar-denominated credit. The structure is designed to match the cash-flow cycles of agricultural production, allowing repayments aligned with harvest revenues and sales timelines.
The local-currency line targets a broad base of rural producers and partners, while the dollar line is aimed at farmers with revenues linked to international markets, such as cotton growers. By allowing costs and revenues to be matched in the same currency, the structure helps reduce foreign-exchange exposure and improves financial planning.
Bayer AG (BAYN) said the transaction supports its strategy of building long-term relationships across its agricultural value chain. “The transaction will provide a competitive financing alternative. We are working to increase the purchasing power of clients and partners and to offer another financing option in a year marked by scarce and challenging credit conditions for agribusiness,” said Marcos Arruda, chief financial officer of Bayer’s agricultural division in Brazil. “Access to innovative tools will be an important competitive differentiator.”
The financing lines are part of Bayer’s CropCredit program, which aims to broaden access to credit in agribusiness. The initiative is supported by Farmtech, which provides the technological infrastructure for the financial solutions offered to Bayer’s clients.
The deal was executed through the creation of agribusiness investment funds structured as receivables funds, known as Fiagro-FIDC. These vehicles acquire credit rights linked to the purchase of Bayer products, expanding financing alternatives along the agribusiness chain and connecting rural producers more closely with capital markets.
Rabobank Brasil said the operation highlights the role of structured finance in supporting the agro-industrial sector. “This operation reinforces Rabobank’s commitment to the development of Brazilian agribusiness by structuring financial solutions that directly reflect the reality of producers and the logic of global supply chains,” said Mario Ferreira, head of wholesale at Rabobank Brasil. He added that the bank’s role goes beyond lending by connecting capital, sector expertise and innovative structures across the agricultural chain.