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FINANCING SOLUTIONS FOR AGRICULTURE
ASIA
“We provide companies in the agricul tural sector with the debt and private equity capital fi nancing they need to grow their business.”
Gaëlle Bonnieux
Head Agriculture Debt Financing
Page 2
TAILOR-MADE FINANCING SOLUTIONS
OUR OFFERING responsAbility is a leading fi nancing partner in the sustainable agriculture sector in developing economies. Through our managed funds we offer customised debt and equity fi nancing covering the diverse needs of actors along the agricultural value chain that improve livelihoods in rural areas. By helping clients to increase productivity, gain access to higher-paying markets and achieve more balanced trading relations, responsAbility managed funds maximise their development impact while optimally capturing investment opportunities.
SERVICES • Short term fi nancing, to fi nance inventory and receivables,
pre export and export• Long term fi nancing, to fi nance the purchase or
construction of property, plan and equipment• Sub-debt fi nancing• Equity fi nancing• Technical Assistance
CLIENT BENEFITS
Tailor made solutions adapted to your business model
Increasing amounts to help you grow your business
Ability to provide long term solutions for capex
A dedicated team of experts recognised for its attentiveness, proximity and ability to react quickly to client needs
Eligibility for investment includes the following criteria: • Contribute to economic development of low income
population in rural areas through productivity improvement and access to market
• Sustainable business models within the agricultural value chain
• A clear committment to environmental and social criteria • Annual fi nancial reports audited by a reputable company
(last 3 years) • Ability to provide annual fi nancial projections
TERMS & CONDITIONS
Working capital Long term fi nancing
Purpose Financing of inventory, receivables advances to suppliers
Construction or acquisition of land, property, equipment
Amounts Minimum 1 million USD Minimum 1 million USD
Tenor Up to 12 months Up to 7 years
Currency USD, EUR USD, EUR
Interest rate Market rates Market rates
Collateral • Sales contract assignment• Floating charge on assets• Collateral management agreement• Guarantee mechanisms
• Pledge on fi xed assets• Pledge on loan portfolio• Trust agreement
Page 3
A GLOBAL PLAYER ACROSS THREE SECTORS
responsAbility Investments AG is one of the world’s leading asset managers in the fi eld of development investments. The company’s investment solutions supply debt and equity fi nancing to companies in emerging and developing economies.
RESPONSABILITY FOCUSES ON THREE INVESTMENT SECTORS: Agriculture, fi nancial services and energy, and on companies with inclusive business models that help to meet the basic needs of broad sections of the population and to drive economic development – leading to greater prosperity in the long term.
responsAbility has over USD 3 billion of assets under management, invested in more than 560 companies across 96 countries. Founded in 2003, the company is headquartered in Zurich and has local offi ces in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. Its shareholders include a number of reputable institutions in the Swiss fi nancial market as well as its own employees. responsAbility is registered with the Swiss Financial Market Supervisory Authority FINMA.
Rice PepperPepper SugarSugar SoybeansSoybeans Coffee Cashew
AGRICULTURE FINANCING ACROSS 45 COUNTRIES AND 57 COMMODITIES
OTHER12 %
CENTRAL ASIA3.3 %
MIDDLE EAST & NORTH AFRICA
7.6 %
LATIN AMERICA30.1 %
ASIA-PACIFIC30.4 %
SUB-SAHARANAFRICA15.1 %
more than 3 % 1 – 3 % less than 1 % %
Investment volume per countryas of 31.12.2016
Investment volume per regionin % of total, as of 31.12.2016
EUROPE1.5 %
Page 4
FINANCING YOUR GROWTH
SOLUTIONS FOR COMPANIES ALONG THE ENTIRE VALUE CHAIN
Faced with changing market requirements refl ecting increasing demand, shifts in diets and international product standards, actors along the agricultural value chain need fl exible fi nancing suited to their specifi c needs to address emerging challenges, leverage new opportunities and successfully grow their business.
Financing solutions are adapted to the different requirements of companies along the agricultural value chain, including
• pre-harvest fi nancing• export-related fi nancing• asset fi nancing• project fi nance• mortgage fi nancing
Our partners can choose from fi nancing solutions with different maturities, innovative and fl exible collateral structures, currency hedging and transparent terms and pricing structures.
We grow with our clients. Where required, we also offer technical assistance and advisory services, for example, in relation to business plans or structuring capital.
Exporter
responsAbility(Switzerland)
Buyer(Europe, USA etc.)
Acknowledges to pay responsAbility
against contracts
3
Payment for goods shipped made to responsAbility
6
4
Fund
ing ag
ainst
export
contr
acts
2
Assig
ns co
ntrac
ts
to res
pons
Abilit
y and
signs
lega
l docu
mentat
ion
1
Signs contracts with Exporter
5
Ships goods to Buyer
EXAMPLE OF EXPORT SALES CONTRACT ASSIGNMENT
• Input providers• Equipment providers
• Farms• Producer organizations
• Processors• Warehousing• Transport• Packaging services
• Traders• Retailers
Increase yieldsand quality
Short term financing:Financing of inventory, receivables advancesto suppliers.
Long term financing:Construction or aquisition of land,property and equipment.
Boosttrade
Fair accessto market
responsAbilitymanaged funds
FinancialInstitutions
ProducersProduction factors
Processing & Logistics
Distribution & Retail
Page 5
HOW TO OBTAIN FINANCING
Review of financial and corporate information to confirm eligibility
Due diligence including inspection of facilities and meetings with the management
Investment Committee decision
Final negotiations and signing of legal documentation
Disbursement to the counterparty
Ongoing monitoring and assistance
We select investments based on a tried and tested approach that enables us to respond to your fi nancing needs in a quick, effi cient and fl exible way.
Our experienced team of dedicated local experts can complete the fi nancing process within 6 – 8 weeks. Drawing on their deep understanding of local markets and commodities, they can cater to individual requirements and ensure that we provide a stable source of fi nancing that helps to diversify our partners’ borrowing profi le.
Our investment offi cers and transaction managers maintain close relationships with our counterparties at all times to anticipate and respond quickly to any arising needs or diffi culties.
FINANCING WITH IMPACT
responsAbility managed investments along the agricultural value chain are guided by a focus on several key impacts benefi ting its investees and their communities as income gains for farmers translate into improved livelihoods, growth and employment and reduced environmental impacts.
PRODUCTION FACTORS & PRODUCTIONAgricultural fi nance can help producers achieve higher and more stable incomes through improved productivity and soil fertility as well as reduced vulnerability to external shocks like pests, diseases and drought. Thanks to the cash cushion provided by responsAbility managed funds, farmers do not have to sell their produce immediately after harvesting, when prices are lowest, but can negotiate better prices with buyers.
PROCESSING & LOGISTICSBy supporting organisations involved in processing, packaging, transport, or storage, agricultural fi nance helps to add value to raw agricultural products, thus raising the prices that local farmers receive. It can enhance the effi ciency of supply chains, by optimising the use of natural resources, such as agricultural land and water, and reducing energy and food waste, thereby mitigating negative environmental impacts. It can also create new employment opportunities by enabling the development of distribution networks.
DISTRIBUTION & RETAILAgricultural fi nance helps producers gain better access to markets by fi nancing traders. Traders also help suppliers to better match demand by keeping track of changing consumer preferences, market conditions, standards and regulations, and to tap more secure and higher-paying markets.
Page 6
“SRESTA NATURAL BIOPRODUCTS, INDIA”
“A decade ago, no one in India talked about organic pro-duce. When we started out, the fi rst thing we had to do was to explain the benefi ts of organic foods to consumers. respons Ability understands our business model and recognises its potential.”
Rajashekar Reddy Seelam,
Founder and Managing Director of Sresta Natural
Bioproducts Private Limited, India
Rajashekar Reddy Seelam
Page 7
YOUR REGIONAL PARTNER
ASIA
ABOUT THE REGIONresponsAbility has been operating in Asia since 2012 and has facilitated fi nancing for companies along the value chain of more than 15 commodities in 12 countries across the region. We manage investments in businesses active in all segments of the agricultural value chain that increase agricultural productivity, promote fair trade, provide fair wages and working conditions, and minimise environmental degradation.
“We enjoy the challenge of covering the specifi c fi nancing gaps our partners might face by providing tailor-made fi nancing solutions to drive their growth.”
Suhasini Singh,
Regional Head – Agriculture Debt Financing
12COUNTRIES
USD 188 MINVESTED VOLUME
26COUNTERPARTIES
We can structure our products based on the requirements of potential borrowers who are closely assisted by our investment offi cers on the ground. Our strong relationships with upstream and downstream partners give us detailed insight into our clients’ operations and market developments as they unfold.
15COMMODITIES
Page 8
YOUR REGIONAL TEAM
ASIA
Expertise: • Over 14 years’ experience in fi nance, including 6 years in
investment banking in India, focusing on cross-border M&A in the technology and IT services sectors
• Extensive experience in development-related investments in sectors including fi nancial inclusion and agriculture
• Involved in the fi nancing of microfi nance organisations in South Asia and agribusinesses in Asia-Pacifi c
Expertise:• Over 8 years’ experience in asset management and
investments across sectors and asset classes• More than 4 years’ experience in impact investments with
a focus on investments in sustainable agriculture• Special expertise in creating non-traditional, tailor-made
fi nancing structures for MSMEs to help them scale their business
Expertise: • 12 years’ professional experience including 10 years in
debt investments, commodity fi nance and M&A across the agricultural value chain
• Successfully developed agriculture portfolio in Vietnam, Cambodia, Laos, Philippines, Singapore and Hong Kong
• Key skills in structuring fi nancial transactions, stakeholder negotiations and client relationship management
Suhasini SinghRegional Head – Agriculture Debt FinancingEmail: [email protected]
Anshul JindalInvestment Offi cer – Agriculture Debt FinancingEmail: [email protected]
Karan MehtaInvestment Offi cer – Agriculture Debt FinancingEmail: [email protected]
Legal disclaimerThis information material was produced by responsAbility Investments AG and/or its affi liates with the greatest of care and to the best of its knowledge and belief. However, responsAbility Investments AG provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this information material are those of responsAbility Investments AG at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all fi gures are unaudited. This information material is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell fi nancial instruments or services and does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is in line with his/her own circum-stances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This information material may not be reproduced either in part or in full without the written permission of responsAbility. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this information material nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person. Every investment involves risk, especially with regard to fl uctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor’s reference currency. It should be noted that historical returns and fi nancial market scenar-ios are no guarantee of future performance.
Copyright © 2017, responsAbility Investments AG. All rights reserved.
responsAbility Investments AGJosefstrasse 59, 8005 Zurich, SwitzerlandPhone +41 44 250 99 30, Fax +41 44 250 99 31www.responsAbility.com
