The credit facility award is a 12-month unsecured, uncommitted revolving credit facility with an annual extension option of a further 12 months. Nedbank has been the initial Mandated Lead Arranger and Bookrunner on this successful syndication since its inception in 2018, with credit facility renewals being achieved annually. The unsecured loan terms will allow ETG to fund its subsidiaries for working capital solutions across its fertiliser, agri chemicals, and grower inputs businesses. These agricultural input financing efforts will further promote sustainable practices and enhance agricultural productivity.

The agricultural commodity syndication closed at US$102 million with participation from 8 lenders, including 3 new lender participants, and marks the first time that the facility has surpassed US$100 million. The lender participation is at the highest it has been in the syndicate’s 6-year history. This milestone highlights Nedbank CIB’s capabilities in agricultural debt finance and arranging and bookrunning complex deals that cater to the evolving needs of agricultural conglomerates.

ETG: A diversified conglomerate

ETG has developed into a global player with a presence in more than 45 countries, spanning 6 continents.  

The Group has a diverse portfolio of expertise across various industries, encompassing agricultural inputs, chemicals, logistics, processing, food and food ingredients, energy, metals, technology and supply chain optimization. 

The borrower, ETG Agri Inputs FZE, serves as the central treasury and marketing arm for ETG’s fertiliser and Agri Inputs vertical.

Through a close, long-term business relationship of over 12 years with Nedbank, initiated by the Agricultural Commodities debt finance team in 2012, Nedbank has been awarded the mandate for this syndication for the sixth consecutive year. The financial partnership with ETG has grown significantly, with Nedbank CIB now providing nearly R4 billion in farm credit loans and other forms of agricultural financing to ETG.

This latest syndication success will provide funding for ETG’s operations, specifically in the fertiliser, agri chemicals, and grower inputs businesses. This will boost farm management and agricultural productivity, while contributing to food security and agricultural development across Africa and other key regions. By facilitating these working capital solutions, Nedbank CIB is reinforcing its commitment to supporting farm investors and driving sustainable growth in the agri management sector.

ETG’s vertically integrated agricultural business and extensive, diversified agricultural supply chain enhance its ability to meet the growing demands of the global market. This global agricultural presence is key to its ability to operate efficiently and sustainably, while ensuring stable prices for its agricultural commodities. Nedbank CIB's involvement as a lender and financial partner reflects its growing role in agricultural commodities financing and supporting clients with innovative agricultural debt finance solutions.

The importance of vertical integration

This partnership also emphasises the importance of vertical integration strategies in driving efficiency within agribusiness management and ensuring financial stability across the agricultural sector. With Nedbank CIB's support, ETG can further its commitment to enhancing yields and securing sustainable practices for commercial farms, providing valuable agricultural loans and farm equipment financing to enhance their operations.

The credit facility renewal for this revolving credit facility demonstrates Nedbank CIB’s ability to provide bespoke agricultural financing solutions tailored to the needs of key players in agriculture and investment. Through collaboration across its teams, Nedbank is empowering farm investors and promoting online farming investment opportunities that drive growth in agribusiness management.

As ETG continues to expand its reach across the 6 continents in which it operates, the success of this syndication underlines the strength of Nedbank’s long-standing commitment to its partners. The ability to provide unsecured loans with flexible terms has been critical to the success of ETG's agricultural input financing. By meeting the financial needs of a leading player in the agricultural space, Nedbank CIB is not only fostering growth in the sector but also contributing to the broader goal of sustainable food security in Africa and beyond.