GLOBAL: White Lion Foods (WLF), an international agribusiness, has returned to the market with its second Islamic Profit Participating Note (PPN) issuance, as the first listed PPN launched under the Cordoba Capital Markets Jersey (PCC) program on the 11th November 2024. The issuance is part of the working capital investment program that will facilitate growth within the global trade finance and supply chain sectors.
The PPN issued through a protected cell note structure under this program will raise US$4.5 million as part of its US$12 million working capital issuance. The raised funds will be used as working capital to purchase raw materials, process, ship and sell the final product, with proceeds to be shared directly with note holders.
Following approval from the Jersey Financial Services Commission, Cordoba Capital Markets Jersey (CCM) launched the Shariah compliant USD notes issuance program for professional investors. Hogan Lovells acted as the financial adviser for the transaction, providing legal and advisory support throughout the structuring and issuance process, alongside Cordoba Capital Markets.
CCM advised WLF on all aspects of the transaction, from corporate finance and origination to structuring and issuance, as it did previously, when WLF issued a US$2 million Islamic PPN to support its working capital in April 2023.
The take-up of this PPN has been evenly distributed between Islamic and non-faith-based investors, with note holders including family offices, high net worth individuals and mass affluent investors. Attracting interest with a yield of 16% per annum, the investment offers carefully managed risks. Key factors driving investor interest include WLF’s management and internal controls, outright ownership of land and facilities, a globally diversified distribution network and a focus on ESG criteria.
Following this issuance, CCM is preparing the Jersey PCC to issue PPNs for several more clients, to help raise a total of US$60 million across a range of diversified industry sectors and trade activities.
By consolidating administrative overheads at the program level, CCM enables companies to access its global investor base through a listed instrument, avoiding the high costs typically associated with listing on international exchanges. It closely manages the flow of capital and monitors the performance of each investment by implementing a set of treasury controls, cover ratios and reporting metrics.
