Lavoro Limited announced the establishment of a new ZAR 420 million (equivalent to approximately $86 million based on current exchange rates) secured credit facility with a 4-year term. This strategic financial move involves the issuance of Agribusiness Receivables Certificates, a type of fixed-income financial instrument specific to Brazil's agribusiness sector and governed in accordance with Brazilian securities laws. Lavoro Agro Holdings S.A., a Lavoro Limited subsidiary in Brazil, is the issuer of the CRAs as part of the Credit Facility.

The proceeds of this new facility are intended to retire existing short-term borrowings, providing Lavoro with more sustainable and longer-term financing options for working capital needs and other growth initiatives. The Credit Facility is split in two separate series maturing in December 2027. The terms of the Series I, totaling ZAR 68 million, is based on the Central Bank of Brazil's benchmark rate, bearing an interest rate of CDI plus 3% per annum.

The terms of the Series II, totaling ZAR 352 million, bears an interest rate of 14.2% per annum. The issuance of the Credit Facility was carried out in collaboration with EcoAgro Group, a firm specialized in the structuring of CRAs. UBS BB served as the lead coordinator for this transaction, with Alfa and XP Investimentos acting as coordinators in the syndicate.