You are here: Home » Companies » News
Business Standard

Origo does first securitised agr-commodity transaction in capital markets

This transaction creates an alternative asset class through Agri-commodities

Topics
Agriculture | agri commodities | Vivriti Capital

BS Web Team  |  New Delhi 

Since 2016, the Agribazaar app platform has connected almost 16,000 traders and processors, over  200 Farmer Producer Organisations with its network of over 300,000 farmers
Origo provides end-to-end agriculture supply-chain solutions such as procurement, storage and financing.

Origo Commodities, India’s leading agritech supply chain and trade finance company has joined hands with financial services enabler to execute a new asset class of securitised commodities in the country. The asset class will be available to institutional investors, introducing in capital markets.

Origo provides end-to-end supply-chain solutions such as procurement, storage and financing.

With its transaction, Origo has forayed into the domestic securitisation market for agricultural produce, creating access for investors to invest in through a regulated and listed instrument. The transaction is listed with and regulated by WDRA.

The first securitised transaction has already concluded through the purchase of maize in the Gulab Bagh area of Bihar, for the transaction worth Rs 7 crore and aiming at Rs 100 crores for the current fiscal year.

ALSO READ: Weighing the pros and cons of the call for making MSP a legal right

Speaking on the launch, Sunoor Kaul, Co-Founder of Origo Commodities. said, “It is a great opportunity for investors to consider this as an additional option to hedge risks that other asset classes pose during market volatility. PTCs not only allow investors access to the Indian growth story but also infuse much-needed capital in this sphere. Less than 5% of the agri market has access to institutional capital today and we hope that the creation of asset classes like this will allow better penetration of formal credit into the system. Higher liquidity, in turn, will allow for better management and infrastructure for warehousing and food distribution in the country. Better food grain management and seamless transactions will also turn around the economic prospects for farmers and other stakeholders.”

Adithya Murali, Vice President Structured Solutions – Enterprise Finance at said, “We are excited to launch this as a new asset class which can over time expand the securitization market in the country. This transaction, with the credit protection it provides to investors, can help establish agriculture commodities as a strong asset for debt capital markets and provide liquidity relief to several participants in the agriculture commodities ecosystem. The availability of structured finance instruments has always increased investor participation over time, and this should be no different for commodity backed issuances.”

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, October 08 2020. 21:11 IST
RECOMMENDED FOR YOU
.