Sumitomo Mitsui Banking Corp. is lending 20 billion yen (US$200 million) to Brazilian agribusiness Amaggi. Amaggi will use the funds to improve its distribution network and increase exports of soybeans and corn to Japan. Conditions attached to the loan dictate that Amaggi will continue to export a minimum annual amount of grain to Japan even through possible market crisis events. Amaggi grows and processes grain in central and western Brazil which is then shipped to Japan through traders including Japanese Marubeni Corp. In order to help the country secure future food supplies, the Japanese government will be assuming some of the risk associated with the six-year deal through its trade insurance scheme. The loan will likely be concluded in Brazil by Sumitomo Mitsui Financial Group president Koichi Miyata on August 1st.
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