CRA - Agribusiness Receivables Certificate

What is it?

A security backed by Agribusiness Credit Rights

Concept

CRAs are freely tradable credit instruments backed by agribusiness receivables that can only be issued by securitization companies and represent a promise of future payment in cash.

Issue

CRAs may only be issued by Securitizers of Agribusiness Credit Rights, under Article 36, Sole Paragraph of Law 11,076.

Backing Assets

CRAs are tied to Credit Rights originating from the trading between Farmers or their Cooperatives and third parties, including financing and loans related to the production, sale, processing or industrialization of agricultural products or inputs or machinery and supplies used in agricultural activities. (Law 11,076/04, Article 23, III, and Sole Paragraph)

What are they used for?
Characteristics:
Where do the funds come from?

The funds come from the capital market:

Advantages for the investor
Advantages for the debtor
Legislation (in Portuguese only)