LAGreen Fund marks first investment in Brazil through a local instrument “CRA” in Gencau a sustainable cocoa processor

Article originally published on LAGreen's website on 08/10/2025. The European Union through LACIF contributes to the LAGreen Fund through financial instruments and technical assistance.

The LAGreen Fund, has successfully completed its inaugural investment in Brazil with a first of its kind transaction for the Fund through a local instrument “agribusiness receivable-backed securities” (CRA by its Portuguese acronym). The investment of USD 3.7 million supports Gencau, a pioneering agribusiness dedicated to sustainable sourcing and processing cocoa, while ensuring solid traceability.

CRAs (Agribusiness Receivables Certificates) are bonds backed by receivables—future payments that farmers or agribusinesses are due from buyers of their products. They provide companies with upfront financing and give investors exposure to the agricultural sector, often with tax benefits. When issued under sustainable or green labels and accompanied by a Second Party Opinion (SPO), CRAs offer transparency and credibility for impact-focused investors in line with thematic bonds.

This transaction with Gencau denotes a series of landmarks for LAGreen: it’s debut in Brazilean capital markets, and it marks the capacity of the Fund to operate with local instruments like CRAs. This transaction is the second direct corporate investment, advancing the Fund strategic switch from financial institutions into corporate transactions. All these aspects reinforce LAGreen’s catalytic role and operations’ capacity to advance green capital markets.

The capacity to operate with local instruments and co-invest hand in hand with local institutional investors underscores the relevance of LAGreen as an international impact investor scaling sustainable finance and driving visibility for sustainable sourced value chains.

“This milestone reflects exactly what LAGreen was designed to do: shape new markets, catalyze private capital, and create measurable impact,” said Myriel Frische, Portfolio Manager. “Partnering with Gencau demonstrates how green finance can support both sustainable agriculture and resilient rural livelihoods.”

The proceeds of the investment will finance deforestation-free cocoa sourcing and expand agroforestry systems in the states of Pará and Rondônia. More than 800 smallholder farmers will benefit through fair pricing, technical assistance, and inclusion in traceable supply chains aligned with IFC Performance Standards.

Gencau CEO, Adriano Pedroso remarked “At Gencau, we believe that sustainable growth goes hand in hand with farmer prosperity and biodiversity conservation. This partnership with LAGreen Fund allows us to expand agroforestry, strengthen traceability, and offer fairer opportunities for hundreds of family farmers. Together, we are setting a new standard for responsible cocoa production.”

The investment leverages a model for sustainable agriculture CRAs in Brazil, contributing to the deepening of the country’s thematic bond market. By combining innovative financing tools and instruments, environmental rigor, and local co-investor mobilizations, this transaction sets a precedent for future agriculture focused capital flows in Latin America.

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About LAGreen
LAGreen is the first green bond fund dedicated to Latin America. By investing in green bonds and supporting new issuers with technical assistance, LAGreen’s goal is to boost environmental and social benefits across the region and promote the transition to a green economy. In addition, the fund aims to promote high impact standards for green bonds, both in terms of the impact of supported projects, as well as green credentials, reporting, and impact assessment.

As an impact investment fund managed by Finance in Motion and Santander Asset Management, LAGreen was established as an initiative of Germany’s KfW Development Bank, with seed capital provided by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ).

For more information visit https://lagreen.lu and follow us on LinkedIn.

About Finance in Motion
Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.

For more information, please visit us at: www.finance-in-motion.com
You can also follow us on LinkedIn

About Gencau

The Gencau Group was born from the union of two entrepreneurs passionate about chocolate. On one side, Ernesto Ary Neugebauer, descended from a pioneering family in the industry, which has been producing chocolate in Brazil since 1891. On the other, Adriano Sartori Pedroso, with experience in the industrial sector and over 10 years working with machinery, equipment, and solutions for the chocolate industry. The main goal of these two visionaries is to provide high-quality cocoa ingredients with guaranteed origins, respecting the entire production chain. This means operating sustainably, from the rural producer to the end customer.

Media contact LAGreen
Nusha Westhoff
Director Marketing & Communications
Phone: +49 69 271 035 742
Email: info@lagreen.lu

Media contact Gencau
Lucas Cirilo
Marketing Director
Homepage: www.gencau.com
Email: contact@gencau.com