TozziniFreire counsels Gaia and Tabôa on CRA issuance

TozziniFreire Advogados has advised on the first-ever Sustainable CRA issued in Brazil

TozziniFreire steered the offering involved the issuance of Agribusiness Receivables Certificates (CRA) by Gaia Agro Securitizadora S.A., a securitization company, backed by agribusiness credits assigned by Tabôa Fortalecimento Comunitário , in two series, and with maturity date on March 30, 2026.

Tabôa is a non-profitable organization that promotes community-based initiatives and socioeconomics business that values the local culture, diversity, and contributes to the generation of prosperity and life quality.

Started its operation in Abril of 2015, in the district of Serra Grande, Uruçuca/BA and in communities of the “Parque Estadual da Serra do Conduru” (PESC) – Serra do Conduru State Park. Since 2017 has broadened its operation to other communities located in Ilhéus, Uruçuca and Itacaré counties.

This CRA issuance was the first-ever Sustainable CRA issued in Brazil, with social and environmental requirements, to provide microfinance for more than 150 family farmers and cocoa producers in the south of Bahia. The operation was structured in the mixed financing format, which makes it possible to attract market investors with participation.

To access the credit, the producers pledged themselves not to have child labour and to produce cocoa in the Cabruca system, in which trees are grown in the middle of the Atlantic Forest.

The CRA was certified by Waycarbon Soluções Ambientais e Projetos de Carbono Ltda., which issued an opinion confirming that it was aligned with the Green Bonds Principles, the Social Bonds Principles and the Sustainability Bonds Guidelines.

TozziniFreire team was led by partner Alexei Bonamin (pictured), and involved associates Felipe Tulio de Paiva and Gabriel Gragnani.