Pinheiro Neto advises Renovagro and Eco on public offering

Pinheiro Neto has counselled Renovagro and Eco Securitizadora on over $3 million issuance

Pinheiro Neto assisted Renovagro – Agricultura Renovável Ltda. and Eco Securitizadora de Direitos Creditórios do Agronegócio in the public offering of the 1st, 2nd and 3rd series of 28th issue of Agribusiness Receivables Certificates – CRA of Eco Securitizadora de Direitos Creditórios do Agronegócio S.A., backed by agribusiness receivables issued by Renovagro – Agricultura Renovável Ltda. Necton Investimentos S.A. Corretora de Valores Mobiliários e Commodities acted as underwriter.

The agribusiness receivables were composed by the agribusiness credit rights certificate (certificado de direitos creditórios do agronegócio – “CDCA”) issued by Renovagro.
All the proceeds received by Renovagro need to be directed to the purchase and sale of agricultural inputs.

The CDCA is secured by fiduciary assignment over agricultural receivables owned by Guarantors of the CDCA, such as duplicates, barter receivables and rural products certificates – CPR, all of which have a short term and can be revolved. Such agricultural receivables are spread among several debtors, what grants the CRA investors a great assurance that in case of default by Renovagro, its collateral package is indeed reliable and robust.

The fiduciary assignment structure is complex and demanded great knowledge of Renovagro’s agricultural business, to understand how it formalizes its agricultural receivables and in which frequency such receivables could be revolved.

Pinheiro Neto team was led by partner Tiago A. D. Themudo Lessa (pictured), and involved associates Fábio Moretti de Góis and Winnie Tya Tchi Li, and legal assistant Giovanna Espir.