FINANCING SOLUTIONS FOR AGRICULTURE

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1 FINANCING SOLUTIONS FOR AGRICULTURE ASIA We provide companies in the agricul tural sector with the debt and private equity capital financing they need to grow their business. Gaëlle Bonnieux Head Agriculture Debt Financing

2 TAILOR-MADE FINANCING SOLUTIONS OUR OFFERING responsability is a leading financing partner in the sustainable agriculture sector in developing economies. Through our managed funds we offer customised debt and equity financing 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. 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 commitment to environmental and social criteria Annual financial reports audited by a reputable company (last 3 years) Ability to provide annual financial projections SERVICES Short term financing, to finance inventory and receivables, pre export and export Long term financing, to finance the purchase or construction of property, plan and equipment Sub-debt financing Equity financing 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 TERMS & CONDITIONS Purpose Working capital Financing of inventory, receivables advances to suppliers Long term financing 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 fixed assets Pledge on loan portfolio Trust agreement Page 2

3 A GLOBAL PLAYER ACROSS THREE SECTORS responsability Investments AG is one of the world s leading asset managers in the field of development investments. The company s investment solutions supply debt and equity financing to companies in emerging and developing economies. RESPONSABILITY FOCUSES ON THREE INVESTMENT SECTORS: Agriculture, financial 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 offices in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. Its shareholders include a number of reputable institutions in the Swiss financial market as well as its own employees. responsability is registered with the Swiss Financial Market Supervisory Authority FINMA. AGRICULTURE FINANCING ACROSS 44 COUNTRIES AND 56 COMMODITIES OTHER 18.3% EUROPE 1.0 % CENTRAL ASIA 5.9 % MIDDLE EAST & NORTH AFRICA 7.6 % ASIA-PACIFIC 20.9 % LATIN AMERICA 31.9 % SUB-SAHARAN AFRICA 14.4 % Investment volume per country as of Investment volume per region in % of total, as of more than 3 % 1 3 % less than 1 % % Rice Pepper Sugar Soybeans Coffee Cashew Page 3

4 FINANCING YOUR GROWTH SOLUTIONS FOR COMPANIES ALONG THE ENTIRE VALUE CHAIN Faced with changing market requirements reflecting increasing demand, shifts in diets and international product standards, actors along the agricultural value chain need flexible financing suited to their specific 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 Our partners can choose from financing solutions with different maturities, innovative and flexible 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. pre-harvest financing export-related financing asset financing project finance mortgage financing EXAMPLE OF EXPORT SALES CONTRACT ASSIGNMENT 2 Assigns contracts to responsability and signs legal documentation 4 responsability (Switzerland) Funding against export contracts 6 Exporter 3 Acknowledges to pay responsability against contracts Payment for goods shipped made to responsability 1 Signs contracts with Exporter 5 Ships goods to Buyer Buyer (Europe, USA etc.) Production factors Producers Processing & Logistics Distribution & Retail Input providers Equipment providers Farms Producer organizations Processors Warehousing Transport Packaging services Traders Retailers Increase yields and quality Boost trade Fair access to market Short term financing: Financing of inventory, receivables advances to suppliers. Long term financing: Construction or aquisition of land, property and equipment. responsability managed funds Financial Institutions Page 4

5 FINANCING WITH IMPACT responsability managed investments along the agricultural value chain are guided by a focus on several key impacts benefiting its investees and their communities as income gains for farmers translate into improved livelihoods, growth and employment and reduced environmental impacts. PRODUCTION FACTORS & PRODUCTION Agricultural finance 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 & LOGISTICS By supporting organisations involved in processing, packaging, transport, or storage, agricultural finance helps to add value to raw agricultural products, thus raising the prices that local farmers receive. It can enhance the efficiency 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 & RETAIL Agricultural finance helps producers gain better access to markets by financing 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. HOW TO OBTAIN FINANCING We select investments based on a tried and tested approach that enables us to respond to your financing needs in a quick, efficient and flexible way. Review of financial and corporate information to confirm eligibility Our experienced team of dedicated local experts can complete the financing 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 financing that helps to diversify our partners borrowing profile. Due diligence including inspection of facilities and meetings with the management Investment Committee decision Our investment officers and transaction managers maintain close relationships with our counterparties at all times to anticipate and respond quickly to any arising needs or difficulties. Final negotiations and signing of legal documentation Disbursement to the counterparty Ongoing monitoring and assistance Page 5

SRESTA NATURAL BIOPRODUCTS, INDIA A decade ago, no

When we started out, the first thing we had to do

6 SRESTA NATURAL BIOPRODUCTS, INDIA A decade ago, no one in India talked about organic produce. When we started out, the first thing we had to do was to explain the benefits of organic foods to consumers. responsability 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 6

7 YOUR REGIONAL PARTNER ASIA ABOUT THE REGION responsability has been operating in Asia since 2012 and has facilitated financing for companies along the value chain of more than 16 commodities in 10 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 can structure our products based on the requirements of potential borrowers who are closely assisted by our investment officers 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. USD 244 M INVESTED VOLUME 10 COUNTRIES 28 COUNTERPARTIES 16 COMMODITIES We enjoy the challenge of covering the specific financing gaps our partners might face by providing tailor-made financing solutions to drive their growth. Suhasini Singh, Regional Head Agriculture Debt Financing Page 7

YOUR REGIONAL TEAM ASIA Suhasini Singh Regional Head Agriculture Debt Financing Email: suhasini.singh@ responsability.com Anshul Jindal Investment Officer Agriculture Debt Financing Email: anshul.

com Expertise: Over 14 years experience in finance, including 6 years in investment banking in India, focusing on cross-border M&A in the technology and IT services sectors Extensive experience in

Expertise: 12 years professional experience including 10 years in debt investments, commodity finance and M&A across the agricultural value chain Successfully developed agriculture portfolio in

Officer Agriculture Debt Financing Email: vyuyen.le@ responsability.com Karan Mehta Investment Officer Agriculture Debt Financing Email: karan.mehta@ responsability.

Successfully assisted clients cross-border investments from the US, Europe, and Asia into Vietnam with the use of different banking products: corporate finance, transaction banking, global markets

8 YOUR REGIONAL TEAM ASIA Suhasini Singh Regional Head Agriculture Debt Financing responsability.com Anshul Jindal Investment Officer Agriculture Debt Financing responsability.com Expertise: Over 14 years experience in finance, 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 financial inclusion and agriculture Involved in the financing of microfinance organisations in South Asia and agribusinesses in Asia-Pacific Expertise: 12 years professional experience including 10 years in debt investments, commodity finance 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 financial transactions, stakeholder negotiations and client relationship management Vy Uyen Le Investment Officer Agriculture Debt Financing vyuyen.le@ responsability.com Karan Mehta Investment Officer Agriculture Debt Financing karan.mehta@ responsability.com Expertise: 11 years experience in corporate banking covering multinational corporate clients across various industries including consumer service, manufacturing and agriculture. Successfully assisted clients cross-border investments from the US, Europe, and Asia into Vietnam with the use of different banking products: corporate finance, transaction banking, global markets and structured finance. Key skills including credit analysis, relationship management, transaction structuring and business development 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 financing structures for MSMEs to help them scale their business Page 8

9 Legal disclaimer This 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 circumstances 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 scenarios are no guarantee of future performance. Copyright 2017, responsability Investments AG. All rights reserved. responsability Investments AG Josefstrasse 59, 8005 Zurich, Switzerland Phone , Fax

FINANCING THE CASHEW SECTOR. Shiru Mwangi, Regional Head Agriculture Debt Investments Sub Saharan Africa

FINANCING THE CASHEW SECTOR. Shiru Mwangi, Regional Head Agriculture Debt Investments Sub Saharan Africa responsability Investments AG FINANCING THE CASHEW SECTOR Shiru Mwangi, Regional Head Agriculture Debt Investments Sub Saharan Africa ONE INVESTMENT PLATFORM Two asset classes and three sectors Finance