One example is Chew’s Agriculture, one of the largest egg farms in Singapore. In 2019, the company signed a 10-year sustainability-linked loan of approximately US$ 19 million with DBS Bank. Following Humane Farm Animal Care standards was crucial for Chew’s Agriculture to obtain lower interest rates.

Another major example is Fazenda da Toca, the largest producer of organic eggs in Latin America and a Certified Humane® seal holder. The company raised more than US$ 4 million through the issuance of an Agribusiness Receivables Certificate (CRA, in its Portuguese acronym) with a green seal. It was the first Green Bond granted to the laying hen sector in Brazil. The company aimed to increase its production of free-range and cage-free eggs by 133% by 2024.

Fazenda da Toca, led by entrepreneur Pedro Paulo Diniz, is located in Itirapina, in the Brazilian state of São Paulo, and covers 2,300 hectares. Among the various sustainable activities developed by the company, the increased production of organic and free-range eggs with the Certified Humane® seal stands out. For the company to obtain the CRA with a green seal in the national poultry sector, which had been unprecedented until then, having the Certified Humane® seal was essential.

“This operation means a great deal not only for Fazenda da Toca, but for the entire organic products segment in Brazil. It is a clear demonstration that there is growing investment in regenerative and sustainable projects, which broadens growth prospects for our sector. This type of financing is the perfect combination of financial return and economic viability with positive environmental and social impact,” said entrepreneur Pedro Paulo Diniz to the newspaper Valor Econômico. Certified cattle farming has also obtained a CRA. 

Fazenda da Toca follows in the footsteps of Rizoma Agro, another company certified by Certified Humane® under the beef cattle standard, which in 2020 also raised more than US$ 4 million through an Agribusiness Receivables Certificate (CRA). It was the world’s first Green Bond issuance for agricultural financing of rural producers with certification from the British Climate Bonds Initiative (CBI).

Located in the city of Iaras, in the state of São Paulo, with 1,200 hectares of productive area, Rizoma Agro is also owned by entrepreneur Pedro Paulo Diniz. The company is investing the funds raised in the cultivation of corn, soybeans, beans, oats, chickpeas and lime, as well as in beef cattle farming and agroforestry. Part of the capital is also being used for irrigation and for a biological products factory for pest and disease control.

The strong potential of sustainable agribusiness and animal welfare are major economic drivers. According to the Climate Bonds Initiative itself, the investment potential for agriculture in Brazil is estimated at US$ 131 billion by 2030. Financing agricultural, livestock and other animal farming projects is seen as a promising opportunity for the coming years. The Certified Humane® seal has undoubtedly proven to be an important factor in attracting investors.