Sidra Capitals USD Private Finance Funds Continue To Achieve

Press Release

Sidra Capital’s USD Private Finance Funds Continue To Achieve Target Returns Despite The Effects of COVID-19 Pandemic

USD Income Fund generates an annual return of 8% while USD Mutajara Fund registers healthy 5% returns

Jeddah, Saudi Arabia, March 24, 2021 – Sidra Capital, a Shari’ah compliant asset management firm headquartered in Jeddah, Saudi Arabia and regulated by the Capital Market Authority (CMA), has announced healthy annual returns on two of its US Dollar-denominated funds: the USD Income Fund, which generated above-target returns of 8%, and the US Dollar Mutajara Fund, which met its targeted return of 5% for 2020.

The returns are especially impressive in light of global challenges such as disruptions in supply chains in certain markets and other challenging market conditions stemming from the Covid-19 pandemic.

“Performance of our trade finance funds in 2020 showcased the resilience of our private finance strategy in the face of the external shocks brought about by the pandemic,” Hani Baothman, Chairman of Sidra Capital, said. “Despite the challenges, our private finance transactions did not experience a single default, and the funds offered an excellent alternative investment asset class that provides hedging to portfolios and protects investors’ wealth from market fluctuations.”

The Sidra Income Fund is a US Dollar-denominated private fund focused on supporting infrastructure supply chain transactions in Asia. The fund is designed to capitalize on the infrastructure boom in Asia and aims at achieving stable, high-yield returns uncorrelated to the stock market and global commodity prices.

Specializing in natural commodities, the Sidra Income Fund offers Shari’ah-compliant, top-tier, income-generating asset classes for risk-averse investors. It aims at achieving stable, high yield returns uncorrelated to the stock market and global commodity prices while contributing positively toward the social and economic development of the communities that the invested companies operate in.

The Sidra Mutajara Fund, also US Dollar-denominated, combines Shari’ah-compliant money market investment with structured trade finance products in order to achieve liquidity, steady performance and above-benchmark returns. The fund is regulated by the Saudi Capital Market Authority (CMA) and provides investors with quarterly distributions and the option of liquidity through the quarterly exit feature.

The Sidra Mutajara Fund plays an important role in financing growth in the real economy. It supports nonspeculative value-added small and midsize enterprises (SMEs), in emerging markets and focuses on agricultural commodities and metals.

Since 2012 Sidra Capital has launched four funds under the umbrella of its private finance strategy. The four funds comprise the award-winning Sidra-Ancile Global Structured Trade Investment Fund (GSTIF); the award-winning Sidra-Ancile Debt Equity Conversion Option Investment Fund (DECO); the Sidra Mutajara Fund (SMF); and the Sidra Income Fund launched in early 2019. To date, Sidra’s disbursed capital under the private finance strategy has reached US$1.33 billion and includes the financing of more than 2,389 transactions with 64 counterparties.