Use of Securities for Financing Agribusiness in the Context of Globalization

Abstract

Globalization has led to significant changes in agribusiness, integrating it into global trade networks and creating both opportunities and challenges. The capital-intensive nature of the sector, combined with the need for sustainable development, requires innovative financing mechanisms. Securities as a financial instrument have become a key solution to meet the diverse financing needs of the sector. Their role in providing access to international capital markets, promoting sustainable development, and reducing risks highlights their relevance in financing agribusiness in the context of economic globalization.

The aim of the research is to study the use of securities as a mechanism for financing agribusiness in the context of globalization.

Methods: analysis of scientific literature, abstraction, generalization, systematization.

Results. The study found that globalization has expanded agribusinesses' access to markets, enabling them to use securities to attract a variety of investors. Successful global practices include the use of "green" bonds for sustainable agricultural projects and tokenized securities to democratize financing. Analyzing the Ukrainian experience shows that securities are underused due to limited market infrastructure and regulatory challenges, despite the successful listing of some agribusinesses on foreign exchanges. Potential innovations, such as blockchain-based securities and financial instruments focused on sustainable development, are considered transformative tools to overcome these issues.

Conclusions. Securities provide significant prospects for financing agribusiness, aligning with global trends in sustainable financing and digital innovation. To harness their potential, it is crucial to improve the regulatory framework, enhance market infrastructure, and strengthen investor confidence. Implementing best global practices while addressing internal challenges can help agribusinesses grow in an increasingly interconnected world. Strategic measures aimed at integrating securities into agribusiness financing will not only support sector growth but also contribute to global food security and sustainability.