Frozen vegetable supplier Grano Alimentos issued a BRL70 million ($14 million) social bond to support the purchase of vegetables from family farmers in Rio Grande do Sul, a region in Brazil increasingly affected by extreme weather events.

The region has suffered extreme weather events in recent years, such as the floods that hit the region in 2023 and 2024, which caused significant damage to small farms, disrupting production, destroying infrastructure, and generating widespread economic losses.

The transaction, structured as an Agribusiness Receivables Certificate (CRA) with a five-year term, is partially backed by receivables from suppliers. The proceeds will be directed toward food sourced from climate-vulnerable family farms, reinforcing food security and socioeconomic development.

Aligned with the Social Bond Principles (SBP), the issuance qualifies under categories such as Food Security and Sustainable Food Systems and Socioeconomic Advancement and Empowerment. The project enhances access to private markets for raw materials and fosters income diversification for small-scale producers.

Itaú BBA was lead coordinator.

Awards judges commended the initiative. One said: "Food security is essential and finding innovative ways to help farmers such as this will be beneficial."

Another commented: "[This initiative is] driving lending to a segment that is likely to face increasing challenge over time and potentially higher risk."