AMERRA Capital Management It is targeting about $200 million for a special loan fund that will provide senior secured financing mainly to Brazilian food and agriculture companies. International Finance Corporation (IFC) is considering investing up to $30 million.
According to a project description seen by CrowdFund Insider, AMERRA Natural Capital Credit Fund will offer loans in US dollars using transaction-specific structures and sustainability-related incentives.
The fund is designed to expand midstream agricultural companies’ access to private climate finance, a segment that may require more flexible financing than is typically available through traditional bank loans or public debt markets.
IFC’s proposed investment will be for its own account and is expected to help AMERRA mobilize additional commitments from institutional investors.
The fund will focus on projects that increase productivity, create jobs and strengthen resilience in the use of land, water and biomass.
The strategy reflects growing interest in private credit as an alternative source of capital for agricultural companies that often struggle with seasonal cash flows, exposure to commodity prices and investment requirements that do not fit into standard lending structures.
AMERRA plans to provide senior secured loans, prioritizing the fund over unsecured lenders in the event of borrower default.
The use of transaction-specific structures will allow financing terms to be tailored to the needs and operating cycles of individual companies.
Sustainability-related incentives will also be included in the financing.
Such arrangements could tie loan pricing or other terms to agreed-upon environmental and operational outcomes and give borrowers a financial incentive to improve resource efficiency and climate resilience.
IFC said the project could demonstrate how private credit can provide not only customized financing but also capacity building and pricing incentives tied to sustainability outcomes for mid-sized agricultural producers.
The model has the potential to be replicated elsewhere in the region, where similar companies often face limited access to long-term climate finance.
As part of its non-financial support, IFC will work with AMERRA to improve the fund’s environmental and social management system and align it with IFC Performance Standards.
This work will include strengthening screening criteria, portfolio monitoring procedures and risk-based supervision.
The measures are intended to help the fund identify and manage environmental and social risks in its investments.
AMERRA is a US-based specialist investment manager focusing on private loans for food and agribusinesses in the Americas, with a focus on Brazil.
The firm was founded in 2009 by Craig Tashjian and Nancy Obler, who remain its controlling owners and principal principals.
The proposed IFC commitment remains subject to the development agency’s review and approval process.
