Boston, MA 10/16/2014 (wallstreetpr) – Metlife Inc (NYSE:MET) disclosed that it has provided agricultural mortgage loan of $150 million to the Brazil-based Amaggi group. The loan would have a term of 12 years with a floating rate of interest.
Metlife Inc (NYSE:MET) indicated that the debt was secured through a qualified mortgage of real estate on developed farmland in Mato Grosso State of Brazil, its statement indicated. The group owns $1.5 billion worth of farmland in Brazil. This apart, it has sales of $4 billion. The current loan would allow Amaggi Group to increase its production.
Currently, the company has an agricultural loan portfolio of approximately $700 million in Brazil since opening its office in Brazil in April 2012 for its agricultural investments. It pointed out that its global agricultural portfolio was estimated to be approximately $13 billion.
Metlife Inc (NYSE:MET) stated that Amaggi Group was a family-owned agricultural company, which was the biggest domestic producers and traders in Brazil on farm commodities. It said that it was looking forward to working with the Brazilian company to support them grow their business.
Metlife’s Senior MD and Global Head of Real Estate, Robert Merck, said that the latest agricultural loan in Brazil was in line with its tactics. Its objective was to invest in mortgages secured through the best quality real estate in big markets. The Amaggi Group was one of the leaders in the agricultural sector with well-developed grain storage, as well as, transportation facilities.
Top Soybean Exporter
Bloomberg reported that Brazil was the top soybean exporter in the world, and its output was projected to touch a record high in the current 2014-15 season fueled by farmer’s expansion of planting.
Metlife seemed to be looking to invest in a diversified portfolio since yields from fixed-income has been at historic lows. Its investment portfolio was over $505 billion and mostly in bonds. Metlife Inc (NYSE:MET) has disclosed deals to establish industrial parks in Seattle-area and offered financing for an airport in Copenhagen indicating its preference to expand its portfolio.