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Sidra Capital Launches Singapore- based VCC for Cross-Border Commodity Supply Chain Investments

Sidra Capital, a prominent Shari’ah-compliant asset management firm regulated by the Saudi Arabian Capital Market Authority, has introduced its inaugural Singapore-domiciled variable capital company (VCC) named Sidra Asian Opportunities Investment I VCC.

Launched in November 2023, this VCC focuses on facilitating cross-border commodity supply chains, particularly in solid fuel from select Indonesian producers. Investment strategy revolves around utilising fully funded irrevocable Letters of Credit (LC) to secure trades, mitigating foreign exchange and payment risks.

Notably, these trades are structured to avoid speculative trading, ensuring investors are shielded from inventory and price fluctuations.

Mr. Hani Baothman, chairman of Sidra Capital, lauded the VCC's launch as an innovative step in private finance investment, leveraging Singapore’s robust legal framework and financial infrastructure. He expressed support for Singapore's aspiration to become a global Islamic Finance hub.

The VCC is managed by Sidra Capital Pte Ltd, a subsidiary licensed by the Monetary Authority of Singapore. Sidra Capital’s track record includes pioneering Islamic private finance solutions in Saudi Arabia, such as the Sidra Income Fund series and the Sidra-Ancile Global Structured Trade Investment Fund.

Read more here or in the PDF below.

Sidra Capital Launches Singapore-based VCC ... _ Sidra Capital
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