Coffee security loan

Bond issued for the Brazilian government 7½% coffee security loan. 1922

The bank led a syndicate with Barings and Schroders to issue this loan of £9,000,000 for the purpose of funding the government purchase of coffee to keep it off the market. The loan was secured on the stockpiled coffee. The bond bears an illustration of coffee pickers, and the coupons (not pictured) feature a detail of a coffee bush.

A number of loans made to Brazil and São Paulo state were secured in various ways on coffee. An 8% loan of £2,000,000 made to São Paulo state in 1921 was secured by a tax on the export of coffee; the 7½ % loan to the federal government in 1922 of £9,000,000 was secured on the sale of stockpiled coffee, as was a 7% loan to São Paulo state in 1930 designed to assist in the liquidation of the stockpiles, when the policy was finally abandoned.