Ki, the first fully digital and algorithmically-driven Lloyd’s syndicate, is pleased to announce that it has entered into a $130m Sustainability Linked Funds at Lloyd’s Letter of Credit Agreement with its banking partners Barclays Bank Plc, Sumitomo Mitsui Banking Corporation & Natwest Bank Plc.
The facility, which was led by Barclays Bank Plc, is structured to support S1618 as Ki grows. The facility is linked to the ESG rating of the Ki Funds at Lloyd’s investment portfolios and also for Syndicate 1618 assets which also have a lower carbon intensity target than the benchmark.
This builds on the investment guidelines Ki has established for its third-party managers, which have incorporated ESG principles and targets. The pricing Ki pays for the facility will depend on the compliance of Ki’s investment portfolios with these ESG targets.
Mark Allan, CEO, Ki said: “As we continue to grow, building a sustainable footprint and having a positive impact is an important priority for Ki. We are therefore pleased to announce this facility, which brings together our own ESG objectives with those of our capital providers and Lloyd’s.”
Burkhard Keese, CFO at Lloyd’s, commented: “Responsible investing is an important part of Lloyd’s ESG strategy and we are therefore delighted to see Ki complete this innovative facility that brings ESG requirements to the forefront of its investment approach.”
Marco DeBenedictis, Head of Sustainable & Transition Finance, Barclays Corporate Banking, said: “We are proud to support institutions who have ESG at the core of their strategy and Ki is a prime example of this. Creating new financing packages supporting responsible practices is something that we will continue to do with great focus, as well as continuing to support innovative solutions coming out of Lloyd’s.”