• Through the SURA Private Corporate Debt Fund II, the Company aims to become a key ally for all those companies that require long-term financing in the light of prevailing market conditions.
• The Fund disposes of a total of COP 38,000 million, of which COP 12,000 million has already been invested. The Company’s goal is to be able to channel up to a total of COP 1.2 trillion through this new means of financing.
• The purpose of this Fund is to support the reactivation of different economic sectors such as Manufacturing, Services, Energy and Retail by offering financing for a number of different requirements going from monthly payroll payments and working capital, to on-balance sheet capital investments for large corporates.
SURA Investment Management, a subsidiary of SURA Asset Management, an expert investment management firm catering to institutional clients, launched its new Private Debt Fund (namely the SURA Private Corporate Debt Fund II (FCP SURA Deuda Corporativa Privada II), the purpose of which is to serve as a means of financing for SMEs, companies belonging to the business and corporate segments as well as large corporates, all of which are facing the challenges of today’s business world. With this new financing facility, organizations receiving loans shall be able to finance a broad range of requirements, going from monthly payroll payments and working capital, to on-balance sheet capital investments for large corporates.
This initiative, the aim of which is to help support the current economic reactivation, joins two other funds that SURA Investment Management has launched over the last few months the first an infrastructure investment fund and the other for purchasing real estate and in so doing provide liquidity to those companies requiring such. With this new fund, the Company expects to mobilize up to COP 1.2 trillion towards sectors that are key from the standpoint of economic recovery, job creation and preserving the country's business fabric.
“Here at SURA Investment Management we fully understand and accept our role and responsibility as a key player in the region’s economic reactivation. Consequently, we are developing products and implementing strategies so as to be able to provide structured financing options to all those companies that require such. This is an idea opportunity for channeling resources that can really help in recovering the country's productive apparatus”, explained David Aguirre, Executive Director of Alternative Assets at SURA Investment Management.
Channeling private savings towards productive, job-creating sectors is a way of showing our commitment to the recovery of our business fabric. The comprehensive vision afforded by the SURA Private Corporate Debt Fund II is aimed at providing liquidity to all those companies that require such and, in this way, ensure the reactivation of the SME segment, which represents more than 80% of the country’s direct employment, while providing support for large corporates that are, in turn, the main clients of our SMEs.
“Our strategy is aimed at preserving capital, diversifying risk, and offering consistent returns for our investors. In this respect, we are deploying three investment strategies with well-differentiated approaches for companies of all sizes, these being Corporate Credit, Structured Credit and Working Capital. We have developed a competitive and diversified strategy for each of these types of investment, so as to be able to customize these to the needs of each company,” added Juan Carlos Botero, Senior Vice President of Private Debt at SURA Investment Management.
Unlike other traditional financing alternatives offered by the banking sector, the SURA Private Corporate Debt Fund II carries extended grace periods that can relieve pressure on a company's liquidity; flexible structures that can be adjusted to the company’s cash flows; collateral and credit enhancements consistent with the nature of the business in question; among other benefits.
For the SME segment, the Company has formed a partnership with Finkativa, a Fintech company that specializes in lending to this important segment. Through this partnership, we aim to meet the general financing needs in terms of payroll and working capital of all those companies with annual incomes of less than COP 50,000 million thereby ensuring their ongoing productive development.
For the business, corporate and large corporate segment, which includes companies with annual incomes of more than COP 50,000 million, the Fund shall be able to meet the demand for credit either directly or in conjunction with banks and other creditors, in the form of the so-called syndicated loans or club deals.
The average amounts offered by the SURA Private Corporate Debt Fund II vary depending on the segment:
• SME Payroll Loans: between COP 300 and COP 800 million
• SME Working Capital Loans: between COP 1,000 and COP 4,400 million
• Business and Corporate Loans: between COP 10,000 and COP 25,000 million
• Large Corporate Loans: between COP 20,000 million and COP 60,000 million
This new SURA Investment Management vehicle is taking hold as the only one in the region and the first of its kind in Colombia, and joins two recently launched funds, one for large and medium-sized companies in Peru and another for SMEs in Chile, all of which form part of the Company’s portfolio.
About SURA Investment Management
SURA Investment Management is a subsidiary of SURA Asset Management dedicated to providing its asset and investment management services for the institutional segment. Our knowledge and extended presence in several Latin American countries, well-articulated via a regional platform, makes us an optimum investment vehicle for connecting up the region with global markets. We create solutions especially tailored to our clients, for the purpose of driving their competitiveness, through various funds and investment mandates in equity and fixed-income securities, multi-asset, insurance, mandates, alternative assets, among others.