Brazil / Loan Insurance for Amaggi Agriculture Development

Nippon Export and Investment Insurance (NEXI) has decided to provide insurance for a loan extended by a Japanese bank to AMAGGI EXPORTAÇÃO E IMPORTAÇÃO LTDA (“Amaggi”), a Brazilian agribusiness company. The loans will be used to enhance Amaggi’s agriculture business development. This is the first time for NEXI to provide insurance for an agricultural financing project.

 

The loan agreement and agreement on NEXI’s insurance were signed between Amaggi, Sumitomo Mitsui Banking Corporation (“SMBC”), and NEXI on August 1, 2014, on the sidelines of a meeting between Japanese Prime Minister Shinzo Abe and Brazilian President Dilma Rousseff.

 

Amaggi is Brazil’s major producer and distributor of soybeans and corns that are important grains for Japan in terms of food security.

 

Under the loan agreement between Amaggi and SMBC, Amaggi must export a certain amount of grain to Japan during the agreement period, and make its best effort to export to Japan even in emergency situations. The agreement will contribute to Japan’s food supply security and also strengthening of ties between Japan, Amaggi and Brazil.

 

In June 2014, the Japanese Cabinet issued the “Strategy for Exporting Infrastructure Systems,” which indicates that the government and private sectors will jointly address to increase soybean and corn imports from Latin American countries. The agreement with Amaggi will be a specific example of implemention of this strategy.

 

NEXI will continue to support projects contributing to stable food supply in Japan.

 

(Reference)

Insured (Lender)	Sumitomo Mitsui Banking Corporation
Insurable value	USD 200 million
Tenor	Approx. 6 years