The Brazilian unit of the operator of raw Materials Bunge released a Monday fintech with $500 million available to provide financing for agreements between farmers and retailers of agricultural supplies.
The new business, called Fincrop, will grant credit after a risk assessment focused on social and environmental criteria, the company said.
Bunge will verify sustainable practices by monitoring field data, including satellite imagery and real-time field information.
The company does not finance farmers directly, but rather participates in swap operations in which farmers sell a portion of their crops in advance for the passing on of farm inputs from retailers.
“We saw, throughout the value chain, a strong demand for a financial product that reconciles controlled risk with a verifiable and traceable ESG component”said the firm’s director of finance in Brazil, Florence Shoshany.
Source: Reuters
Source: Gestion
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