ICBC contributes $20 million to $40 million syndicated PxF facility for Grupo Scheffer to receive export prepayments

📋 Staff Comments

1. Grupo Scheffer is a Brazilian grain production company. It produces cotton, soybeans, and corn. The company also engaged in cattle farming. Since 1983, Scheffer Scheffer has produced cotton and cottonseed, soybeans, corn and raised and fattened cattle in the states of Mato Grosso and Maranhão, in the Central-West and Northeast regions.
2. Veirano Advogados acted as legal advisor in the transaction.
3. A pre-export finance (PXF) facility is an arrangement in which a commodity producer gets up-front cash from a customer in return for a promise to repay the customer with that commodity (possibly at a discount) in the future. PXF funds may be advanced by a lender or syndicate of lenders to a commodity producer to assist the company in meeting either its working capital needs (for example, to cover the purchase of raw materials and costs associated with processing, storage and transport) or its capital investment needs (for example, investment in plant and machinery and other elements of infrastructure). PXF facilities are usually secured by (1) an assignment of rights by the producer under an ‘offtake contract’ (i.e., a sale and purchase contract between the producer and a buyer of that producer of goods or commodities), and (2) a collection account charge over a bank account into which proceeds due to the producer from the buyer of the goods or commodities under the offtake contract are credited. There are two key documents in prepayment finance transactions: a contract providing for the advance payment by the offtaker to the producer for the purchase of goods/commodities (the 'Prepayment Contract'), and a loan agreement between a lender and the offtaker (the 'Offtaker Loan Agreement') under which the advance payment is financed.

📚 Sources & References

• Scheffer recebe financiamento do Rabobank e ICBC de US$ 40 milhões
• Exportador brasileño Scheffer recibe financiamiento de Rabobank e ICBC Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.