UFJ’s structured finance department in London has made progress in its efforts to arrange bilateral and club deals in the commodity finance arena. Brazil is one of the target countries for the team and recently the following soft commodity transactions were closed.
A US$20mn soybean pre-export facility for Inlogs International Limited, a top 100 Brazilian exporter and leading logistics provider. This is a bilateral structured commodity finance facility covering the prepayment of non-GMO soybean exports to Inlogs Logistica for the 2004/05 Brazilian soybean crop. In turn, Inlogs Logistica shall use the funds to import fertilisers and distribute inputs to contracted growers in the state of Matto Grosso. The facility is short term and follows the entire crop cycle through to final export to international buyers.
Meanwhile, UFJ and Banco Bradesco closed a US$20mn soybean pre-export facility for Sementes Selecta, one of the leading non-GMO seed and soybean producing companies in the state of Goais. The structured commodity finance facility is short term and tracks the crop and export cycle for non-GMO soybeans for the forthcoming 2004/05 crop covering the import of fertilisers and the distribution of inputs to growers contracted to Selecta.
The security structure migrates from warehouse finance over the inputs to crop finance back into warehouse finance over the harvested soybeans pending export to international offtakers.