AMERRA Capital Management is targeting about $200 million for a private credit fund that will provide senior secured financing to predominantly Brazilian food and agribusiness companies, with the International Finance Corporation (IFC) considering an anchor investment of up to $30 million.
According to a project disclosure seen by CrowdFund Insider, the AMERRA Natural Capital Credit Fund will offer US dollar-denominated loans using transaction-specific structures and sustainability-linked incentives.
The fund is designed to expand access to tailored climate finance for mid-tier agribusiness companies, a segment that may require more flexible financing than is typically available through conventional bank loans or public debt markets.
IFC’s proposed investment would be made for its own account and is expected to help AMERRA mobilize additional commitments from institutional investors.
The fund will focus on projects that improve productivity, create jobs and strengthen resilience in the use of soil, water and biomass.
The strategy reflects growing interest in private credit as an alternative source of capital for agricultural companies, which often contend with seasonal cash flows, commodity-price exposure and investment requirements that do not fit standard lending structures.
AMERRA plans to provide senior secured credit, giving the fund priority over unsecured lenders in the event of a borrower default.
The use of transaction-specific structures would allow financing terms to be adjusted to the needs and operating cycles of individual companies.
Sustainability-linked incentives will also be incorporated into the financing.
Such arrangements can connect loan pricing or other terms to agreed environmental and operational outcomes, giving 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 could potentially 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 enhance the fund’s environmental and social management system and align it with IFC Performance Standards.
That 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 across its investments.
AMERRA is a US-based specialist investment manager focused on food and agribusiness private credit across the Americas, with a particular emphasis on Brazil.
The firm was founded in 2009 by Craig Tashjian and Nancy Obler, who remain its controlling owners and main principals.
The proposed IFC commitment remains subject to the development institution’s review and approval process.