Bedford Row Capital PLC launches short-dated Insured Money Market Certificates to finance global agricultural supply chains

Bedford Row Capital (BRC) has launched EUR, CHF, USD and GBP denominated Shari'a-compliant and conventional short dated Insured Money Market Certificates (IMMC).

The primary strategy of the IMMC is to target the agricultural sector to offer access to critical finance creating positive return to investors with enhanced credit protection in an uncertain economic environment.

The IMMC will raise up to EUR250 million that will provide investors direct access to real assets, underpinned by self-liquidating agricultural products. The IMMCTM is based on strict investment guidelines, incorporates insurance and credit enhancement, providing heightened risk mitigation. The transaction parameters of IMMC are based on a fixed price, fixed term and fixed return, providing additional certainty to investors.

The IMMC certificates will have maturities starting from 30 days and will offer returns of 1.25 per cent above the respective benchmark for all currencies and will launch 15 September 2020. There will be two versions of the IMMC available to investors; conventional and Shari'a-compliant sukuk.

Christoph Kruecken, Global Head of Business Development and Distribution for Bedford Row Capital, says: “The IMMC, conventional or sukuk, provides investors with a solution to their current dilemma of how to invest cash on a short-term basis with a positive net return. Combining self-liquidating assets with short maturity money market instruments and enhance credit protection provides an attractive risk/return alternative. Moreover, the launch of the IMMC is set against a backdrop of banks stepping back from the agricultural supply chain market, leaving a significant demand for short-term financing.”

Bedford Row Capital PLC acts as the lead manager for the IMMC certificates.

Scott Levy, CEO of Bedford Row Capital, says: “With so much uncertainty and rates at record lows or in negative territory, investors are hungry for secure benchmark-beating returns. The launch of the new IMMC certificates democratises the access for conventional and sukuk investors to more attractive returns than traditional cash alternatives.”

The IMMC will be listed on Frankfurt Stock Exchange and settles through Crest, Euroclear and Clearstream.