The new fund, which is called NN (L) Flex Trade Finance, will cover a diversified portfolio of short-dated trade finance loans while applying stringent ESG criteria to the asset class. It will sit within NNIP’s wider alternative credit offering.
The asset class is short in tenure, NNIP said, which provides natural liquidity and allows portfolio managers to react quickly to changing circumstances. This new fund will focus on well-rated loans that facilitate a specific sale of often essential goods, which are supported even during stressed market conditions.
NNIP said it will follow strict investment guidelines to ensure a highly diversified portfolio in terms of geography, sector, and counterparties, without employing leverage.
Channel Capital Advisors is a UK-based trade finance provider that has worked with NNIP over the past five years. Its team has experience in trade finance from top tier banking and finance institutions.
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