Seeks investment in grain storage project in Brazil

2021-07-20
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Industry: Construction Region: Asia Transaction price: US $20,006,820 Method of transaction: Equity investment

Project introduction

Project content: It is planned to establish five grain warehouses, whose operations include receiving, cleaning/drying, storage and delivery of grain;

Construction period: the estimated construction period of each warehouse is 12 months;

Funding structure: 60 per cent is expected to come from loans, with the remaining 40 per cent coming from institutional investors, infrastructure funds or private investors focused on the agricultural sector. The total investment sought for the entire project is around US $100 million (including five warehouses), but a phased investment could also be considered.

Project background

Brazil is a big producer of grain, and the state of Mato Grosso, a major soybean and corn producer, has insufficient grain storage capacity.

As of 2018, only 13.2 per cent of the necessary storage capacity existed in farmland (60 per cent in Argentina and 90 per cent in the US), and the situation has not improved much since.

Due to the lack of adequate food warehouses, the production of summer and autumn crops is improperly stored, sometimes in the open air, directly affecting the quality of cereals, causing heavy losses to producers and wasting large amounts of food.

We are looking for investment for this project, please contact us if you have investment intention.