Sidra Capital, the Shari’ah-compliant investment company regulated by the Saudi Arabian Capital Market Authority, announced that Sidra Income Fund II (SIF II) has been awarded the prestigious IFN Trade Finance Deal of the Year 2022 and IFN Indonesia Deal of the Year 2022 at Islamic Finance News (IFN) Awards 2022.
Sidra Income Fund II is the US dollar-denominated investment fund focusing on commodity export trades within the Asia-Pacific region. It is an attractive, Shariah-compliant, income-generating investment opportunity in Sidra Capital’s private finance platform that facilitates commodity flows between producers and consumers across Asia’s largest economies.
Launched in October 2022, Sidra Income Fund II’s investment strategy is premised on innovative facilitation of commodity supply chain transactions via fully funded irrevocable letters of credits (LC).
Furthermore, the fund investment strategy includes acquiring stabilized and income-producing assets with long-term leases, in key markets across the United States.
The fund aims to generate stable cash flows and provide attractive risk-adjusted returns to its investors through a combination of rental income and capital appreciation. SIF II provides investors with a way to access the benefits of commercial real estate investment without the need for direct property ownership or management.
The Islamic Finance News Awards honor the best in the Islamic financial industry and are one of the most prestigious awards highly recognized by the global Islamic capital markets. These awards continue to be an apt representation of the current Islamic financial market landscape.
Hani Baothman, Chairman, Sidra Capital
“Sidra Capital is no stranger to the structured trade finance space, having established award-winning trade finance funds since 2012. The latest IFN awards are a testament to the company’s ability to scout for private finance opportunities globally and innovate investment solutions that bridge the gap between capital providers and users while mitigating inherent risks in such structures.”
“Our private finance solutions have a low correlation to other asset classes, generate consistent returns with low volatility, and invest into the real economy with no leverage or speculation, which creates a win-win situation for our investors, trade counterparties, and communities that we operate in. This in turn encourages social and economic developments in the markets where we intervene,” Mr. Baothman added.
Officials during the award ceremony.
As the trades are secured end-to-end by USD-denominated LC’s and issued by banks with strong credit ratings, investors are protected against foreign exchange and payment risk by trade counterparties. Furthermore, as the trades are structured as back-to-back purchases and sales of commodities (rather than speculative trading), investors are also not exposed to inventory and price risks.
Sidra Capital also sought Shari’ah-compliant political risk cover against risks of convertibility/ transferability, expropriation, and war and civil disturbance.
As the pioneer of Islamic private finance in Saudi Arabia, the company has a diverse portfolio of Shari’ah-compliant private finance investment solutions, including the Sidra Mutajara Fund and the award-winning Sidra-Ancile Global Structured Trade Investment Fund.
Sidra Capital
Founded in 2009, Sidra Capital is a leading alternative asset manager and is internationally recognized as a leader in the growing Shari’ah-compliant investment industry that specializes in income-generating real estate and private finance strategies.
The firm offers a range of investment solutions to institutional investors, high-net-worth individuals, and family offices in the Middle East and North Africa (MENA) region. It’s real estate investments include commercial, residential, and hospitality assets.
Sidra Capital brings clients a wealth of market expertise and know-how across the vast investment horizon. Further, the experts provide clients with sound advice, as well as innovative, bespoke solutions. The company has a successful track record working with best-in-class regional and global sponsors and asset managers to structure Shari’ah-compliant investment opportunities for its investors.
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