The trust said it intends to promote more sustainable crop production while addressing a capital solutions gap in the agriculture sector across select regions primarily in Latin America.
Patrick Funaro and Cédric Garnier-Landurie, managing directors of Cordiant Capital and key principals of the Agricultural Finance investment team, said: “The need for more sustainable and productive farming globally is a matter of increasing importance, particularly in major exporting regions such as Latin America where farmers suffer from a lack of credit.”
The trust’s investment strategy will give medium- to large-scale farmers access to long-term finance for sustainable agricultural technology investments including drip-feed irrigation, designed to increase yields and reduce environmental impacts, according to the pair.
Cordiant Capital will manage the trust and is targeting an issue of 300 million ordinary shares at $1 per share. The investment manager will target a dividend of 6.5% per year.
So far, Cordiant Capital has deployed over $475m in the strategy across private funds operating out of Brazil and Canada.
Following the IPO, seed assets worth more than $100m will be made available for acquisition by the trust, which will be designated as Article 8 under the EU’s SFDR regime.
The trust’s initial focus will be the company’s initial focus will be mainly in Latin American countries including Brazil, Peru, Chile, Mexico, and Colombia.