Private Debt

Sidra Income Fund I

Sidra Income Fund (“Fund”) is an open-ended private placement fund launched in September 2019 and regulated by Capital Market Authority (CMA) in Saudi Arabia. 

The Fund provides private trade financing to corporations and government-linked entities in Asia involved in infrastructure development, who prefer to buy commodities in bulk and on credit terms while producers prefer cash-on-delivery terms. The Fund facilitates the flow of commodities between the producers and buyers by transferring the receivable from the producers to the Fund upon acceptance of the commodities by the buyers on a Free On Board (FOB) basis, thereby allowing seller to reduce their receivable, shorten payment period and recycle working capital back to their business. The Fund focuses on the solid fuel, sand and stone commodities. 

The Fund aims to distribute income quarterly from Q2 2023 (semi-annual distribution previously) and generate uncorrelated returns to all major asset classes. It is a shariah-compliant fund that does not employ leverage, nor does it take on commodity price speculation risk and/or inventory risk.

The Fund has a target net return of 8.00% per annum in USD (unlevered, net of fees).  Since inception, the Fund has performed above its target return with stable income distributions to investors.