23 Mar Agricultural Funding Success Story 6 – March 2022

Client Position

Long standing RSP client.  RSP knew the client’s position and capability intimately.  Client sought independent funding to co-invest in a material agricultural farm in a joint venture arrangement.  The farm was to capture geographically and enterprise diversity.  Speed to market was essential to prevent losing the opportunity.

RSP Outcome

RSP was first of the joint venture partners to achieve unconditional approval and at a significantly reduced interest rate.  Purchase went through smoothly and without any issues.

Metrics

Purpose:                                            Farm acquisition

LVR:                                                    40%

Equity:                                                > 75%

Loan Amount:                                  $8.0m increase

Risk Rating:                                       Strong

Interest Rate:                                   1.60%

Lender:                                              Mainstream Bank