SLC Agrícola raises $100M in first rural notes issuance
What's the deal? Brazilian agribusiness SLC Agrícola has approved its first issuance of book-entry rural product notes, totaling R$515.48 million (about $100 million), fully backed by a bank guarantee from Banco BradescoDealroom has a profile for this one. Try Dealroom →. The single seven-year series targets professional investors and will be publicly distributed under automatic registration.
How it's structured: The notes carry remuneration linked to 95.5% of the DI Rate, with repayment in two equal installments. SLC Agrícola will swap all proceeds into US dollars, making the effective cost reflect dollar variation plus a 6.15% annual spread.
Why now? The dollar swap aligns the company's funding with its currency exposure, a notable move for a producer selling into global commodity markets. The debt sits among the larger rounds tracked in its category.
What's the endgame? All funds will go to agribusiness activities within SLC Agrícola's corporate purpose — production, commercialization, processing, and related operating costs and investments. The company says the raise may strengthen its capital base and operational capacity in Brazil's agricultural market.
The company: SLC Agrícola is a large-scale producer, marketer, and processor of agricultural products, operating as a rural producer across Brazil's farming sector. It carries a market capitalization of R$8.85 billion.
The signal: The issuance points to agribusiness players turning to structured rural credit instruments to diversify funding beyond traditional channels. By pairing a bank guarantee with a currency swap, SLC Agrícola is packaging local debt to match the dollar-denominated realities of the crops it sells.
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Image credit: Knowles Gallery
