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Innovare Lease Financing Facility April 2018. Innovare: A financial advisory firm focused on investment opportunities in climate-smart agriculture Innovare “Lease-to-Own” Facility: Financing Agricultural Mechanization “A Virtuous Circle which Benefits all Participants”.
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Innovare: A financial advisory firm focused on investment opportunities in climate-smart agriculture Innovare “Lease-to-Own” Facility: Financing Agricultural Mechanization “A Virtuous Circle which Benefits all Participants” • Investors: Attractive, asset-backed, risk-mitigated returns • Manufacturers/Vendors: Increased equipment sales • SMEs: Access to equipment acquisition capital • Farmer Organizations and Smallholder Farmers: Directly: Access to mechanization equipment acquisition capital Indirectly: With more SME demand, FOs and SHFs can increase production and sales while improving livelihoods • Consumers: Increased production of locally-sourced food
Transforming African Agriculture through Mechanization • Challenges: • Lack of funding • Lack of mechanization • Our response: Lease-to-Own Financing • Alternative asset financing for SME agribusinesses which have difficulty accessing capital • Enables smallholder farmers to increase production, yields and income • For investors, attractive, high-impact, risk-mitigated returns
Innovare Lease Financing Facility: Financing Agricultural Mechanization • Capital Markets Funded • Investor “friendly” • Asset Backed, “Lease-to-own Financing” • Replicable & Scalable • Unique Partnerships – Vendors, Guarantors + Users • Prime interest in appropriate agriculture mechanization: • Training and technology advisory for new equipment users • Equipment financing itself always on commercial basis
Partnerships with Vendors in Multiple Agricultural Value Chains Fertilizer Blending Tractors Milk Chillers Grain Processing/ Storage Weighing and Packaging Food Production
Investor Protection and Risk Reduction: Innovare Notes: 4 year, 7% with Robust Collateral Backing 25% Down payment at the time of the lease 50%+ Vendor buybacks in the case of defaults 50% External Guarantees on the lease 100% Asset Financing: Issuer owns the equipment until all lease payments are made
For Further Information: John Riggan Riggan.John@InnovareAdvisors.com US +1.215.842.9272 Mary Jane Potter MaryJane.Potter@InnovareAdvisors.com US +1.203.444.5854 www.InnovareAdvisors.com