AgriNurture, DA, Bataan Freeport Authority ink digitalization program accord

Listed firm AgriNurture Inc. said Friday it entered into a memorandum of understanding (MOU) with the Department of Agriculture (DA) and the Authority of the Freeport Area of Bataan (AFAB) to establish an agri sector digitalization program.

In a disclosure to the Philippine Stock Exchange, ANI said the MOU aims to establish an agri-sector digitalization program dubbed “1DA 1Bataan 1ANI Agri Digitalization Program.”

The program shall have a “general purpose and objective of facilitating the implementation and rolling out of financial inclusion of all stakeholders in the agricultural sector, particularly the unbanked stakeholders such as the country’s farmers and fisherfolk, through a regulated financial technology platform and licensed virtual currency.”

ANI said the tripartite agreement paves the way for the rollout of a blockchain-based platform for trading agricultural produce and virtual currencies globally.

“The 1ANI e-commerce platform, a financial technology ecosystem, allows local farm input requirements and output to be traded using virtual currencies and opens up financing and trading opportunities to institutional buyers and foreign investors residing outside the Philippines,” said ANI president and CEO Antonio Tiu.

Under the MOU, ANI will initially secure a license from AFAB for the issuance and use of “Agri Tokens” in the Freeport Area of Bataan before commencing global operation of the fintech ecosystem.

A Bangko Sentral ng Pilipinas-approved (BSP) branch of an affiliate bank within the freeport will also be required to act as custodian bank for the “Agri Token” and provide other financial services.

In addition, ANI said it will establish and secure a license for an AgriXchange Commodities and Futures Trading Center with AFAB to act as a virtual currency exchange for the conversion of fiat money to virtual currencies and vice versa. 

The commodities and futures exchange will also trade basic commodities in the Association of Southeast Asian Nations (ASEAN) region such as rice, corn, sugar, copra, among others to allow farmers and institutional buyers to hedge.

The MOU also provides the development and establishment of a food terminal complex, cold or dry storage, and logistics hub within the freeport in coordination with the Bataan local government units and the DA to boost the country’s food security program.

The MOU shall take immediate effect upon signing by the three parties.

ANI said the virtual currency in the platform will be asset-backed, meaning it is linked to an asset pool with economic value.

Asset-based virtual currencies are used to digitize certain assets via blockchain technology to securitize assets while ensuring traceability of the flow of funds, the company said.

ANI said it is spearheading the vision “#GREEN2030” to achieve carbon-neutral status within its group on or before the year 2030.

Before the tripartite agreement, ANI secured the green light from the Securities and Exchange Commission for the firm’s ASEAN green bond rating for its 75-million euro long-term green bond.

This was after international rating and research firm CICERO granted ANI a “medium green” rating, the highest given to an agricultural firm issuing green bonds. — DVM, GMA News