Sienna Funding Managers (Sienna IM) has launched a European non-public credit score technique for defence-related firms, amid rising demand for funding into the sector on account of mounting geopolitical tensions.
The brand new technique known as Sienna Hephaistos, in reference to Hephaestus, the Greek god of blacksmiths.
The Paris-based asset supervisor stated that it’s going to assist European SMEs and mid-caps within the defence sector, aiming to lift between €500m (£412m) and €1bn from buyers primarily in Europe.
Learn extra: Sienna IM noticed non-public credit score inflows hit €400m final 12 months
The financing can be tailor-made to the precise wants of defence corporations, Sienna IM stated, akin to modernising their manufacturing strains and accelerating their manufacturing, in addition to funding progress initiatives, with a powerful concentrate on 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 group is actively engaged on figuring out initiatives to allow the speedy deployment of this technique.
Learn extra: Sienna IM expands non-public credit score enterprise with Ver Capital acquisition
“In anticipation of essential regulatory or legislative choices, it’s essential to unite each private and non-private monetary actors for the advantage of safety and peace in Europe,” stated Laurent Dubois, managing director – non-public credit score at Sienna IM.
“Sienna Hephaistos serves as an impactful bridge between, on the one hand, buyers acutely 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 group is already onerous at work with our valued buyers’ 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, non-public credit score has been touted as a viable various by trade specialists.