Finapop, an investment program for cooperatives linked to the Movement of Landless Rural Workers (MST) By offering bonds in the financial market, it reached, in less than two weeks, the goal of raising R$ 17.5 million with the issuance of an Agribusiness Receivables Certificate (CRA). All resources will be used to finance production in the agrarian reform areas.
During the operation, which began earlier this month, more than 5,000 accounts were opened at the brokerage firm Terra Investimentos, which distributed the bonds, and at least 1,600 clients officially declared their interest in acquiring the shares offered by the MST.
CRA bonds were issued in the market by the securitization company Gaia Impacto, with the amount of R$100 each and a yield of 5.5% per year. The maximum amount reserved by a single investor was R$1 million. The complete balance of the operation will be released in the next few hours or this Thursday (16).
Finapop was structured with the support of economist Eduardo Moreira, who is one of the investors. The difference with other applications on the Stock Exchange is that the entire amount raised is donated to cooperatives that produce healthy food, without pesticides, with respect for the environment and on land originating from the agrarian reform.
“People didn’t have to be celebrating the rise in GDP [Produto Interno Bruto], but having food on the table, leaving a homeless situation to have a place to live, having a place at school to put your children,” emphasizes Moreira, in an interview with Brazil in fact.
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“Because no one eats GDP. The rise in GDP alone does not guarantee anything, especially because ours is growing based on wealth sent abroad, often without paying any taxes, in agribusiness and in the financial services sector, which also do not leave us nothing.”
In the economist’s view, Finapop is a response to a context of worsening quality of life for Brazilians.
“Finapop encourages popular financing for family farming. This operation, in my view, is a way of making money reach people who produce food, who are willing to make use of the land that improves the lives of everyone.”
The cooperatives that will receive the funds are located in Paraná, Santa Catarina, São Paulo, Rio Grande do Sul and Mato Grosso do Sul. Until the maturity of the bonds, in July 2026, they will have to pay for the financing obtained in the fundraising and guarantee the remuneration the investor with a fixed rate of 5.5% per annum.
About 13 thousand families are expected to benefit from the operation. They intend to invest the resources in expanding and modernizing the structure for the production of milk, corn, rice, soy, brown sugar and grape juice.
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How does it work
Finapop is based on the distribution of Agribusiness Receivables Certificates (CRA), which is a debt security. Individuals who purchase a CRA are exempt from income tax and will receive their funds back in up to five years, with monthly payments from the 13th month and interest of 5.5%.
As the values are tax-free, interest is net rather than gross, making Finapop one of the most advantageous options in the financial market for small investors.
In addition to this gain, Finapop’s main attraction is knowing that its investment helps finance family farming, which produces 70% of the food that makes up the Brazilian table.
This is the second operation in the financial market developed by Finapop. In the first, the beneficiary was the Nova Santa Rita Agricultural Production Cooperative (Coopan), in Rio Grande do Sul.
R$ 1 million was earmarked for the construction of a new slaughterhouse in the settlement, which already has its own creation and abattoir. The goal now is to complete the works in February of next year and start manufacturing salami, smoked products and sausage.
Among the projects on Finapop’s list are cooperatives that produce cocoa, honey, vegetables, fruits and dairy products.
Edition: Vinícius Segalla