Agrocorp will use the committed sustainable borrowing base facility to address the food supply chain challenges in developing markets in Asia, the Middle East, and Africa
Agrocorp is a global supply chain firm with expertise in various agricultural commodities such as pulses, wheat, rice, oilseeds, sugar, and edible nuts. (Credit: zcf428526 from Pixabay)
Singapore-based Agrocorp International has secured a $50m sustainable borrowing base facility from the Dutch entrepreneurial development bank FMO and Rabobank to improve food supply chains in developing markets.
The committed sustainable borrowing base facility will be used by Agrocorp to address the food supply chain challenges in developing markets in Asia, the Middle East and Africa.
Agrocorp is a global supply chain company with expertise in various agricultural commodities
Agrocorp is a global supply chain company with expertise in different agricultural commodities such as pulses, wheat, rice, oilseeds, sugar, and edible nuts.
Last year, Agrocorp carried over 12 million tons of goods between cultivation centres such as Australia, Canada, US, Ukraine, Myanmar and West Africa, mainly into population rich consumption centres in Asia and the Middle East such as Bangladesh, India, China, Turkey, Indonesia, and Vietnam.
Agrocorp chairman and managing director Vijay Iyengar said: “We are happy to have finalised this facility with FMO and Rabobank and are confident that this will be an important stepping stone to further growth and cooperation.”
Agrocorp will split the borrowing base facility into two equal tranches with FMO covering prepayments and inventory. Rabobank will finance the receivables, and will also play the role of the facility agent.
Under the facility, Agrocorp will coordinate with a consultancy firm Earth Systems to set and monitor sustainability targets and reporting requirements.
Agrocorp will work with FMO to create farmer training programmes in markets such as Myanmar.
FMO chief investment officer Linda Broekhuizen said: “Agrocorp is a natural partner for FMO due to its strong and growing presence in fast developing economies like India, Myanmar, Turkey and Bangladesh.
“Sustainability is also a priority for the company given its market leadership positions in pulses and plant proteins, the consumption of both of which is seen as an important gateway towards a more environmentally friendly food system.”
In April, Cargill, Agrocorp and Rabobank along with other logistics partners have completed a cross-continent commodity trade transaction of wheat from North America to Southeast Asia via a blockchain platform.