A Certificate of Agribusiness Receivables (“CRA” in Portuguese) is a debt security issued by a securitization company backed by agribusiness credit rights. These credit rights arise from financing operations or loans related to agricultural production, trading, processing or industrialization of products, machinery or equipment, all of which are employed in agricultural and animal husbandry production. The securitization companies structure those receivables in order to issue debt securities and distribute them to investors.
Because CRA is a flexible debt security, providing a wide range of structuring choices alongside the agribusiness production chain, such as:
WHAT IS CRA?
WHY STRUCTURING CRA?
BENEFITS ASSOCIATED WITH CRA
ADVANTAGES OF OCTANTE
• Financing of inputs;
• Hedge Financing;
• Crop Financing;
• Account Receivables Financing;
• Sales Increase with limited credit risk;
• Inventory Financing;
• Machinery and Equipment Financing;
• Off-Balance Sheet Financing, among others.
Our structures offer the following benefits to our partner companies:
• IOF exemption for the borrower and Income Tax exemption for the individual investors;
• New source of funding;
• Banking Disintermediation;
• Competitive costs;
• Private investors providing the resources;
• Introduction to the Capital Markets.
Our main focus is on providing a service with great agility. We develop the appropriate custom-made structure in order to achieve our client’s targets, while always respecting the operational and commercial functioning of the agribusiness market. We work in close partnerships with our clients, with transparency and control on every cost involved in the operations.
Proximity with the investor allows us to understand their needs and the appropriate product structure at an acceptable level of risk.
ISSUING CRA
