Turkish agri-tech company Hasfin is planning to issue its second Sukuk worth TRY35 million (US$1.88 million) by the end of December 2022.
The upcoming issuance follows Hasfin’s inaugural TRY10 million (US$536,817) facility issued in October this year.
“We are planning to cover 3,000 farmers’ agricultural inputs with this coming Sukuk,” Hakan Ek, CEO of Hasfin, told ISFI.
The upcoming Sukuk issuance for the one-year-old agri-tech company will be arranged by Nurol Investment Bank, which also arranged Hasfin’s inaugural issuance.
Hasfin helps farmers and livestock breeders access agricultural inputs including fertilizer, seed and feed through established authorized distributors via its Buy Now Pay At Harvest model.
The agri-tech company connects retailers of agricultural inputs with farmers where it purchases the inputs from retailers on a case-by-case basis while farmers purchase the inputs from Hasfin on a deferred basis.
This model allows retailers to reduce the credit risk in their sales while easing the financial burden of farmers, allowing them to make payment at harvest.
In addition to offering the Buy Now, Pay At Harvest model for seed, feed and fertilizer without requiring a guarantor or collateral, Hasfin also provides agricultural and animal husbandry consulting.