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First Sentier Investors

  •   30 April 2021

First Sentier Investors launches private debt capability in collaboration with MUFG Bank

Friday 30 April 2021: With the support of MUFG Bank, Ltd., (MUFG Bank),?First Sentier Investors has launched a private debt capability focused initially on loans to the renewable energy sector.

Leveraging MUFG Bank’s strengths as a leader in project finance and debt capital markets for ESG/sustainability-linked financing, and First Sentier Investors position as a leading global fund manager with A$237 billion in AUM, the new initiative is the latest commitment from Mitsubishi UFJ Financial Group, Inc. (MUFG) as a part of its broader group-wide strategic imperative around ESG.

First Sentier Investors’ sustainable debt strategy has already attracted a cornerstone investor commitment through a standalone First Sentier Investors managed trust structure. The first tranche of renewable loans settled in April.

The strategy will be led by Tony Togher, Head of Fixed Income, Short Term Investments & Global Credit at First Sentier Investors. Mr Togher said the collaboration with MUFG Bank in sourcing potential loans leverages the firm’s strong track record in credit risk.

"First Sentier Investors has established a reputation for conservative credit risk oversight, portfolio construction expertise and strong institutional relationships. In turn, MUFG Bank brings its scale and experience as one of the largest lenders to the renewables sector in the Asia-Pacific. The initiative demonstrates how we can collaborate with our shareholder and its subsidiaries for the benefit of clients,” he said.

MUFG Bank is already one of the largest lenders to the renewables sector in the Asia-Pacific region, with a strong pipeline of opportunities.

Siong Ooi, MUFG Bank’s Co-Head of Debt Capital Markets, said, “The successful launch of this initiative represents another exciting step forward for MUFG’s sustainability financing vision by delivering on two key strategic priorities; those being an absolute commitment to ESG/ sustainability-linked financing, as well as creating new channels for the distribution of loan assets. We anticipate that there will be strong investor demand for this type of asset. MUFG Bank will seek to originate and structure future investment opportunities for First Sentier Investors to meet this demand.”

The establishment of the private debt capability means First Sentier Investors will be able to offer its investor base exposure to a diversified portfolio of ESG/sustainability-linked loan assets, and strategic access to the loan asset class, beyond the traditional bank market.

“With the renewable energy sector in Australia growing rapidly, we are pleased to provide our clients with a debt-based investment product that taps into the transition from a fossil fuel-driven economy to a low-carbon economy,” Mr. Togher said.

MUFG has publicly committed to investing JPY20 trillion yen (A$238 billon) into sustainability related financing globally by 2030. Already well ahead of schedule with 19% of this target being achieved in its first year (FY2019), MUFG recently announced that it has raised this target to JPY35 trillion yen (A$417 billion).

– ENDS – 



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