- The fixed-term fund (FTF) broadens the range of short-term sustainable funding options for borrowers and addresses the dearth of sustainable short-term cash investment products available to institutions
- The issuance follows TreasurySpring’s partnership with the London Stock Exchange (LSE), which combines the fintech’s infrastructure and technology with the LSE’s Issuer Services and sustainability expertise
- It is the first in a strong pipeline of short-term funding issuance by sustainable borrowers on TreasurySpring’s platform
Mitsubishi HC Capital UK, one of Britain’s leading providers of consumer lending, asset finance and vehicle leasing, has borrowed more than €60 million ($65.4mn) on TreasurySpring’s platform by issuing the first sustainable short-term cash investment product available to institutions. More than 75 issuers have to date raised some $80 billion in short-term funding. TreasurySpring has more than 300 institutional cash investment clients with collective control over $30 billion of excess cash.
Mitsubishi issued a rolling one-month, unsecured FTF, a financial instrument that operates in the similar way as a term deposit or notice account. It gives institutional investors exposure to a particular issuer for a specified term, typically of less than one year.
The issuance follows TreasurySpring’s partnership with the London Stock Exchange (LSE), which combines TreasurySpring’s infrastructure and technology with LSEG’s issuer services and sustainability expertise to identify sustainable issuers based upon clear, transparent criteria. The collaboration aims to diversify short-term funding for highly-rated financial institutions and corporations by giving them access to a new pool of institutional capital committed to sustainable investment. To date, sustainable finance has centerd on longer-dated financing without addressing the short-term needs of borrowers and lenders.
Henry Adams, chief product officer at TreasurySpring, said in a statement: “We have achieved our aim of offering investors and issuers a sustainable solution in cash markets, complementary to commercial paper or revolving credit facilities. It is one we aim to develop further and we have a strong pipeline of other borrowers seeking to use the platform.”
The company has an A3 credit rating from Moody’s and by March 2025 aims to have 20% of its assets directly connected to climate action and affordable clean energy. Mitsubishi is investing in renewable energy and vehicle leasing with the goal of having its car and small van fleet 100% electric by 2030.
Robert Gordon, Mitsubishi HC Capital UK PLC’s CEO, said in a statement: “ESG is an important consideration for Mitsubishi HC Capital UK PLC and being able to offer sustainable investment products via TreasurySpring fits perfectly with our Green Financing Framework. We hope this will be just the start of our funding journey via its platform.”
Claire Dorrian, head of Sustainable Finance Capital Markets & Post Trade at LSEG, said in a statement: “It is vital for corporates to have access to a diverse range of funding options as they build towards their sustainability goals. Working with TreasurySpring reaffirms our vision of serving customers across the funding continuum and in supporting the growth of sustainable finance.”