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Cross-border USD financing for Latin American companies

US dollar and sterling term debt for companies in Brazil and the rest of Latin America, usually through an offshore holding company and secured on export receivables, dollar contracts or offshore collateral. We prepare the credit and take it to international lenders. We do not lend.

Who it is for

Latin American companies that earn in US dollars, or can hedge into them, and need longer or larger debt than local banks offer. Requests are originated with the Sigma Trust team in São Paulo.

Typical borrowers

  • Exporters of coffee, beef, pulp, soy and other goods sold in US dollars
  • Groups with contracted revenue in US dollars
  • Companies with an offshore holding company or assets abroad

What it finances

  • Replacing short-tenor local bank lines
  • Capex to expand export capacity
  • Acquisitions abroad
  • Refinancing BRL debt where revenue is in USD

Indicative terms

Ranges we see across the lenders we work with. Each credit is priced on its own merits.

Size
US$10–150M
Tenor
2–7 years
Currency
USD, GBP
Pricing
Priced per credit
Lenders
Global funds
Governing law
English or New York

Indicative market information, not an offer or commitment to lend. Smaller requests are reviewed case by case.

What lenders check

  • USD revenue, or the cost of hedging into USD
  • Audited IFRS accounts
  • Offshore collection accounts
  • Group structure and governance

Where local debt may fit better

  • Revenue mainly in BRL with no natural hedge
  • Needs below the usual ticket size
  • No audited accounts yet
  • Local instruments such as an FIDC or debentures

What we negotiate

We present local accounts, guarantees and collateral in the format a London or New York credit committee expects, and agree governing law, security and collection mechanics before term sheets are requested.

Security and structure

International lenders lend longer in dollars when the structure gives them control of the repayment source before money enters the local system.

Offshore collection accountExport proceeds paid abroad and assigned to the lender
Holding structureOffshore holdco, or a clean onshore borrower with offshore guarantees
Offtake contractsCreditworthy international buyers, sometimes with credit insurance
ReportingAudited IFRS accounts and regular covenant reporting

Documents to start

The first four items are enough for a view on whether the credit can be financed in dollars and which lenders would look at it. The full data room comes later.

Three years of financial statementsAudited, ideally IFRS
Current management accountsYear to date
Short business descriptionTwo pages is enough
Amount and use of proceedsRefinancing, capex, acquisition
Revenue by currencyExport contracts and main buyers
Group structure and existing debtEntities, guarantees, maturities

How the process runs

The same five steps as any mandate. Cross-border facilities take longer than domestic ones because of structuring, due diligence and documentation in more than one jurisdiction.

Full timetable and fees
01 DiagnoseCurrency of revenue, structure, collateral; mandate agreed in writing
02 PrepareCredit memo and model in the format an international committee expects
03 Approach lendersShortlist agreed with you, NDAs, common bid template
04 NegotiatePricing, tenor, security, collection mechanics, governing law
05 Close and drawDue diligence, legal documents and conditions precedent to drawdown

Limitations

So you know early whether this is the right route.

Sigma Credit Capital is a credit intermediary. Every facility depends on the lender's credit approval, due diligence and documentation, and indicative terms are not offers of finance.

We arrange credit for companies and professional counterparties only, not for individuals. We do not provide tax, legal, accounting or foreign-exchange advice: withholding tax, central bank reporting and hedging should be confirmed with your own advisers in each jurisdiction.

Where revenue is not naturally in dollars, we discuss the cost of hedging, or whether a local-currency structure is the better answer, in the first week.

Questions

If yours is not here, write to rveles@sigmacreditcapital.com.

Does my company need revenue in US dollars?
It helps most. Lenders look first at USD revenue or the cost of hedging into dollars. A company with mainly local-currency revenue may be better served by a local structure, and we say so early.
What size of facility do you arrange?
Cross-border USD facilities usually range from US$10M to US$150M. Smaller requests are reviewed case by case.
Do you lend the money?
No. Sigma Credit Capital is an intermediary and holds no loan book. The lenders are international funds that lend on their own credit decisions.
Does the borrower need an offshore company?
Often, but not always. Lenders accept an offshore holding company or a clean onshore borrower with offshore guarantees, documented under English or New York law.
Who handles requests from Brazil?
Requests from Brazil and the rest of Latin America are originated with the Sigma Trust team in São Paulo. Sigma Credit Capital prepares the credit and runs the lender process.
How are you paid?
Mainly through a success fee payable when the facility funds, agreed in writing before work starts. Any commission paid by a lender is disclosed before you accept the facility.

Related USD debt for Latin American exporters · Trade and commodity finance · Agribusiness and commodities

Send a cross-border request

Tell us the amount, the purpose, the currency of your revenue and a little about the group. We reply to arrange a call and, where needed, an NDA.

Go to the request form