Sienna Funding Managers (Sienna IM) has launched a European personal credit score technique for defence-related corporations, amid rising demand for funding into the sector resulting from mounting geopolitical tensions.
The brand new technique is named Sienna Hephaistos, in reference to Hephaestus, the Greek god of blacksmiths.
The Paris-based asset supervisor mentioned that it’s going to assist European SMEs and mid-caps within the defence sector, aiming to boost between €500m (£412m) and €1bn from traders primarily in Europe.
Learn extra: Sienna IM noticed personal credit score inflows hit €400m final 12 months
The financing shall be tailor-made to the particular wants of defence corporations, Sienna IM mentioned, reminiscent of modernising their manufacturing traces and accelerating their manufacturing, in addition to funding development tasks, with a powerful give attention to France, Italy, and Germany.
The technique is assessed as Article 8 beneath the SFDR regulation and can embody incentives for debtors linked to pre-defined sustainable KPIs.
Sienna IM’s funding administration crew is actively engaged on figuring out tasks to allow the speedy deployment of this technique.
Learn extra: Sienna IM expands personal credit score enterprise with Ver Capital acquisition
“In anticipation of vital regulatory or legislative selections, it’s essential to unite each private and non-private monetary actors for the good thing about safety and peace in Europe,” mentioned Laurent Dubois, managing director – personal credit score at Sienna IM.
“Sienna Hephaistos serves as an impactful bridge between, on the one hand, traders aware of the acute challenges dealing with Europe and, on the opposite, industrial SMEs and mid-caps within the defence sector which are experiencing a sustainable improve of their order books. Our crew is already onerous at work with our valued traders’ assist to advertise and shield Europe’s sovereignty.”
The escalating Ukraine disaster has fuelled the necessity for extra defence spending in Europe, the place the sector has been underfunded for many years. Amid a scarcity of financial institution funding, personal credit score has been touted as a viable various by trade specialists.
