/

SMBC to lend ¥20 billion to Brazil’s Amaggi to secure food supplies

Kyodo

Sumitomo Mitsui Banking Corp. will extend ¥20 billion in loans to Brazilian agribusiness company Amaggi to improve its distribution network and boost exports of corn and soybeans to Japan, according to sources close to the matter.

The Japanese government will take on some of the risk of the six-year loans through a trade insurance program designed to secure sufficient food supplies for Japan, the sources said Wednesday.

The loans will be made on condition that the Brazilian company continues to export a certain amount of grain to Japan even in the event of a crisis, such as when prices surge.

Amaggi produces and processes grain in central and western Brazil that is imported to Japan by trading houses like Marubeni Corp.

Sumitomo Mitsui Financial Group President Koichi Miyata is arranging a trip to Brazil to conclude the deal, which might be sealed on Aug. 1, when Prime Minister Shinzo Abe is scheduled to visit the country, the sources said.