Sidra Income Fund II
Sidra Income Fund II (“Fund”) is an open-ended private placement fund launched in October 2022 and regulated by Capital Market Authority (CMA) in Saudi Arabia.
The Fund facilitates the flow of commodities in Asia’s largest economies and focuses on the export of solid fuel from producers/miners in Indonesia to buyers in Asia-Pacific. The quota system adopted by large producers in Indonesia limit the amount of solid fuel that any single buyer can buy directly from the producer, creating a supply and demand mismatch. The fund will procure quota of solid fuel from large producers and forward sell the commodity to buyers in Asia at a premium. The transaction will be structured via back-to-back agreements between producer and fund, as well as between fund and end-buyer. The transactions will be fully-funded by irrevocable Letter of Credit (LC) issued or confirmed by investment-grade banks in Singapore.
The Fund aims to distribute income semi-annually 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 9.00% per annum in USD (unlevered, net of fees).
DOMICILE
Saudi Arabia
TYPE
Open-Ended
TARGET RETURN
9% p.a.
INCEPTION
October 2022
STATUS
Capital raising / distributing
FUND CLASS
Multi Assets
