Sidra Capital.. reveals private financing opportunities around the world

Sidra Capital, a Sharia-compliant investment company that is supervised by the Saudi Capital Market Authority, announced that the Sidra Income Fund II, a US dollar-denominated investment fund focused on commodity export trade in the Asia-Pacific region.

 Sidra has been awarded the coveted Islamic award, Finance News Awards for Trade Finance Deal of the Year 2022 and Indonesia Deal of the Year 2022.

Solid fuel export business

The fund benefits from the branded solid fuel export trade within the Asia-Pacific region, which accounts for 60 percent of the world's population, and with global energy consumption set to increase following the pandemic, along with subsequent disruptions to supply, the fund is in a unique position to take advantage of such events.

Investment strategy

Launched in October 2022, the investment strategy for SIF II is built on an innovative facilitation of commodity supply chain transactions through fully funded irrevocable letters of credit.

Since the deals are fully secured by US dollar-denominated letters of credit issued by banks with strong credit ratings, investors are protected from foreign exchange risk and reimbursement by trading counterparties.

Furthermore, because the trades are structured as consecutive purchases and sales of commodities (rather than a speculative trade), investors are also not exposed to stock and price risk.

Sidra Capital also sought Sharia-compliant political risk hedges against convertibility risks, expropriation and civil unrest.

“Sidra Capital is no stranger to the structured trade finance space, having built award-winning trade finance funds since 2012.

Investment solutions

Hani Baathman, Chairman of Sidra Capital, said, “The latest IFN Awards are a testament to Sidra Capital’s ability to explore private financing opportunities globally and devise investment solutions to bridge the gap between providers of capital and users while mitigating the risks inherent in such structures.”

He added, “Our proprietary financial solutions have low correlation with other asset classes, generate stable returns with low volatility, and invest in the real economy without leverage or speculation, creating a win-win situation for both investors, business parties, and the communities in which we operate. This, in turn, encourages social and economic developments.” in the markets in which we intervene.

As a leading private Islamic finance company in Saudi Arabia, Sidra Capital has a diverse range of investment solutions for Sharia-compliant private financing, including the award-winning Sidra Ansel Structured Trade Investment Fund.