Diversify your portfolio
As an asset class, trade finance has been growing in popularity among investors seeking to diversify their portfolio, with the sector’s high margin of business and low-default rates promising stable and attractive returns.
Our various programmes bring secured and fully-credit insured trade finance transactions to the fixed-income market, opening up the historically closed-off sector further and offering a portfolio of quality, low-risk transactions.
Our emphasis on established midmarket companies, strict eligibility criteria, comprehensive due diligence processes and wealth of sector expertise, means Artis is well placed to select opportunities combining strong returns with a high degree of downside protection.
The company offers investors a listed, tradable bond that institutional investors can buy and then sell in the secondary market, rather than a fund where liquidity is a function of redemption notices and asset managers’ goodwill.
Fixed-income investor, which sought to grow its exposure to the trade finance asset class.
Artis offers fixed-income investors the opportunity to buy listed, tradable bonds linked to our core receivables finance programme.
Converting receivables into listed, tradable bonds
In this particular instance, a fixed-income investor bought a three-year listable, tradable bond related to Artis LoanCo1, our ring-fenced company that supports midmarket trader and corporates through robust, receivables-based financing.
Our transparent financing structures ensured the investor was fully aware of the details of its investment, not least the repayment structure, the replenishment period and the expected rate of returns – investors typically get 5.5% per annum interest paid quarterly.
ArtisLoanCo1 subsequently financed a broad spectrum of short tenor, self-liquidating, credit-insured receivables from established mid-market and large corporates trading globally, with borrowers based in various sectors and geographies. The receivables finance programme is entirely covered by trade credit insurance from A-rated providers, adding yet further security
for investors. Meanwhile, our 5% single borrower and 25% single product limit policies ensure our portfolio is strategically diversified to minimise exposure to any one company or sector.
Comprehensive and rigorous due diligence are conducted throughout the life-cycle of our lending process, from the initial onboarding of a borrower to the assessment of risk across each individual receivables finance deal.
Only the most meticulously risk-assessed and commercially viable transactions make it through to the Artis Investment Committee. Artis carries out comprehensive credit analysis of prospective borrowers using data from S&P and Dun&Bradstreet, while an independent third-party performs verification and know your customer (KYC) checks.