NN Investment Partners Adds Trade Finance Fund To Alternative Credit Offering
NN Investment Partners (NN IP) has launched the NN (L) Flex Trade Finance fund, offering institutional investors access to a conservative portfolio of short-dated trade finance loans which are sourced globally. With the launch of the fund, NN IP as portfolio manager partners with London-based Channel Capital Advisors LLP to enhance sourcing and pipeline management.
NN IP assesses each transaction of the NN (L) Flex Trade Finance fund on ESG criteria using a specific framework for trade finance, and aligns each of these with the Sustainable Trade Criteria from the International Chamber of Commerce. In addition to this, NN IP applies proprietary policies with a focus on financing sustainable goods with positive social impact (encouraging responsible consumption) and restricting the financing of goods with negative impact (such as coal, crude oil and tobacco).
Suresh Hegde, Head of Structured Private Debt at NN IP, said: “In the current low-interest-rate environment, there is growing demand for trade finance amongst institutional investors. Building on our 10-year track record in financing international exports, we have spent a considerable amount of time assessing the short-dated trade finance market. We are delighted to offer a strategy which allows institutional investors to benefit from the attractive characteristics of these assets in a robust and responsible manner, without adding undesirable idiosyncratic risk.”
The NN (L) Flex Trade Finance fund has a medium-term target return of USD LIBOR + 3-4% gross with a weighted average credit rating of BBB-/BB+, and an average maturity of less than one year. It offers institutional investors quarterly interest income distribution and monthly liquidity.
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