Federative Republic of Brazil/Loan Insurance for Louis Dreyfus Company Brasil S.A.

December 11, 2019

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to provide loan insurance for the long-term working capital of the Louis Dreyfus Company Brasil S.A. (LDC Brazil), a leading grain trading company in the Federative Republic of Brazil (Brazil).

LDC Brazil was established in 1942 and is the Brazilian subsidiary of Louis Dreyfus Company B.V. (LDC), a global major merchant and processor of agricultural goods, founded in 1851. LDC commercializes products ranging from soybeans and corn — key items defined in Japan’s food security strategy — to sugar, rice, cotton, coffee and juice, with a contribution from its Brazilian subsidiary in the origination of these agricultural commodities. LDC Brazil is one of the leading agricultural merchants in Brazil, which is among world’s largest food exporting countries, ranked number one for soybeans and number two for corn, in terms of export volumes. LDC Brazil is one of the largest domestic exporters of agricultural products in the country.

As one of the visions announced by the Japanese government, the Export Strategy for Infrastructure Systems (revised by the Management Council for Infrastructure Strategy in FY 2019) aims to ensure a stable supply of food in Japan through the following initiatives: 1) increasing the world’s overall production and investment in the agricultural industry and 2) with the goal of Japan’s steady food import from diverse sources, considering public-private measures targeting in Latin America and other regions in order to strengthen the food procurement efforts especially for key agricultural commodities, such as soybeans and corn, and to encourage outbound investment in the agriculture sector. The underwriting of this loan insurance embodies the strategy in the form of increasing Japanese companies’ transaction volume and diversifying their suppliers, by providing them frequent business opportunities through transactions with LDC Brazil to import Brazilian agricultural products such as soybeans for oilseed crops and corn for feed grains.

As a policy-based financial institution of Japan, NEXI continues to actively support projects contributing to securing the food procurement of Japan.

Insureds Citibank, N.A., Tokyo Branch
BNP Paribas (acting through its Tokyo branch)
ING Bank N.V., Tokyo Branch
Shinkin Central Bank
Commerzbank Aktiengesellschaft, Tokyo Branch
The Bank of Kyoto, Ltd.
The Joyo Bank, Ltd.
Insured amount USD 180 million
Tenor 5 years
Covered risks Political Risk 100% and Commercial Risk 90%

Contact: Infrastructure Group, Structured and Trade Finance Insurance Department
Tel: +81-(0)3-3512-7674