COMMODITY VALUE CHAIN SUSTAINABLE INVESTMENT SUB-FUND
The Commodity Value Chain Sustainable Investment Sub-Fund has been awarded the LuxFLAG ESG Label until the 30th of June 2025.
This label highlights the seamless integration of ESG (Environmental, Social, and Governance) considerations into the investment analysis and decision-making processes. It is known for its high standards and thorough evaluation of the investment product’s strategy. Additionally, the label validates the investment product’s commitment to transparency towards investors and contains essential elements that form the eligibility criteria for the LuxFLAG ESG Label.
INVESTMENT OBJECTIVES
The investment objective of the Sub-Fund is to achieve risk averse but efficient, both financially and socially and environmentally responsible, returns for Investors by:
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Extracting the most value from its investments in non-speculative, sustainable, and tangible Business Sectors in the Agricultural Sectors over the Region deployed to growing business and infrastructural requirements:
- Major Corporates by selectively co-investing alongside, and/or
- SME and/or Mid-Market Corporates by availing to them structured and secured funding (the "Investees"),
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While doing so, generate, through its investments, direct and long-lasting development impacts on the Investees’ capacity to generate sustainable wealth, and incentivizing ESG/SRI positive externalities CV(direct and/or induced) with a special emphasis on local food security, poverty reduction, environment quality and women empowerment.
INVESTMENT STRUCTURE
The investments will take the form of direct structured and secured Private Debt by the Sub-Fund for the Investees’ business and/or infrastructure growth requirement (the "Private Debt Transaction(s)").
For the time being, the Sub-Fund will seek to invest directly rather than indirectly through a Subsidiary and/or Local Asset Owning Subsidiary as may be structurally best for efficiency and security. Accordingly, whenever deemed necessary the Sub-Fund may create Subsidiaries and/or Local Asset Owning Subsidiary.
In relation to this Sub-Fund, it is not necessarily the intention that these Subsidiaries will ultimately be held by a Luxembourg Holding Company as indicated in the descriptions in the “Tax” section of the main Prospectus. It is not the intention for the Sub-Fund to create a Subsidiary and/or Local Asset Owning Subsidiary for each transaction invested or jurisdiction used. The Subsidiaries and/or Local Asset Owning Subsidiary, where used, will have the following purpose:
a) As a Security Vehicle: a Subsidiary that will obtain the rights to the Private Debt Transaction(s)'s collateral being encumbered in favour of, or owned by, the Sub-Fund as security to the Private Debt Transaction(s); or
b) As an Investment Vehicle: Subsidiary through which the Sub-Fund indirectly provides capital participation as a form of investment. This approach will be used in circumstances where it is not deemed beneficial for the Sub-Fund to contract directly with the Investee due to unfavourable legal considerations.
The Subsidiary’s chosen jurisdiction of incorporation will be guided by compliance with legal and tax requirements to obtain efficiencies provided by the relevant jurisdiction pertinent to a specific investment.
SUSTAINABILITY-RELATED DISCLOSURES
Sustainable investment objectives of the fund
Disclosure related to Article 10 of SFDR EU 2019/2088 for Commodity Value Chain Sustainable Investment Sub-Fund