Income You Can
Count On
Reliable Income Generation
At Agrarius, investors benefit from a consistent, income-generating investment instrument that delivers semi-annual cash coupons.
Backed by tangible agricultural assets and disciplined financial structuring, Agrarius turns agricultural productivity into reliable returns.
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Our listed notes are built for investors seeking steady yield and capital preservation without sacrificing exposure to real-economy growth. Unlike volatile equity instruments, Agrarius offers fixed-income stability anchored in South Africa’s most essential sector — food production.
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How we generate stable income:
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Agricultural projects have short pay-off cycles (e.g. farming seasons).
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We invest in projects backed by offtake contracts securing project income.
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All investments are collateralised by real assets.
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We have build a network of offtakers, suppliers, tech and service providers that increase efficiency in projects we invest in.
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Key Benefits for Investor
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Semi-annual cash coupon payments.
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Backed by real agricultural assets.
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Inflation-beating, stable returns.
Risk Management
Our risk management process is multi-layered and robust, designed to protect investor capital at every stage.
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Rigorous Project Selection: We only select projects backed by blue-chip off-takers or industry best practices. We limit our exposure to 30-60% of the expected price, creating a safety buffer of at least 40%.
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Additional Collateral: Beyond the project's own assets, we take additional collateral from the project sponsor, which may include property, equipment or receivables. This collateral is held in a bankruptcy-remote Special Purpose Vehicle (SPV) for the benefit of noteholders.
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Structural Subordination: Unlisted notes issued by Agrarius are structurally subordinated to the listed notes. This provides an additional "first-loss" buffer for listed noteholders.
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Profit Spread: A healthy margin is maintained between the returns from underlying transactions and the profit paid to noteholders. A portion of this spread is retained as a first-loss tranche.
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Securitisation Techniques: Performance fees are kept within the structure to align the interests of the administrator with those of the noteholders, creating another layer of protection.
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Diversification: Our portfolios are constructed to be uncorrelated across geographic locations, seasonality, agricultural sub-sectors, and stages of the production cycle. This systematic approach reduces risk and ensures stable, risk-adjusted returns.
Our Returns
For Agrarius as an agriculture-focused credit fund in South Africa, the ALBI (All Bond Index), CILI (Composite Inflation-Linked Index), and STEFI (Short-Term Fixed Interest Index) serve as appropriate performance benchmarks due to their differing risk and return profiles.
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ALBI represents the performance of the long-term nominal government bond market with average duration of approx 6 years. As Agrarius has high funding collateralisation and considerably lower duration of less than 3 years, we consider the risk profit relatively similar, aiming to match ALBI returns.
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CILI tracks inflation-linked government bonds as protection against real value erosion. Agrarius aims to exceed CILI returns due to higher value added created by its investments.
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STEFI reflects short-term money market instruments and represents a low-risk, highly liquid alternative. Agrarius aims to exceed STEFI returns due higher volatility and lower liquidity.