Horizon Capital, a Swiss investment management company, has unveiled a new sustainable commodity trade finance fund, which it will launch on April 5. The fund, which will start at US$10-15mn in size, will finance commodity trade transactions that contribute to at least one of the sustainable development goals (SDGs), with eligible borrowers having to demonstrate strong environmental, social and governance (ESG) performance. “We’ll put an ESG overlay on various steps of the investment process,” says Sébastien Max, managing partner at Horizon Capital, who tells GTR that the fund will explicitly exclude energy financing and focus solely on agriculture and metals. Horizon Capital currently has a series of trade finance funds specialising in short-term senior secured lending to SMEs located in Europe, Asia and North America. Transactions are originated by its structuring arm, SCCF. The fund is backed by equity from a range of sources, including wealth managers and insurers, Max says. “In Europe we see good demand for this type of structure, while there’s growing interest from Asia. Our strategy is also attractive for insurance companies because of the solvency ratio, and clearly for an insurance company, sustainable trade finance makes sense.” Horizon says that, in order to ensure the… continue reading
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Source: CTRM Center