Tikehau Capital has launched the Tikehau Impact Credit fund.
Tikehau says the high yield fixed income fund looks to finance companies which have the potential to enable the global shift towards a net zero carbon economy. It will focus on three areas: Green or Sustainability-linked bonds or climate pure-players already involved in the energy and ecological transition; issuers who have signed an international pledge towards climate change; companies with the potential to contribute positively to climate change mitigation or adaptation or to reduce other highly material environmental externalities.
The fund’s impact goals include:
A 30% carbon intensity reduction target compared to the High Yield ESG index (ICE Global High Yield ESG Tilt Index)
A minimum 25% invested in issuers highly exposed to climate change which need to accelerate their transition and where impact can be meaningful (eg. manufacturing, agriculture, transportation)
A contribution towards an annual 5% self-decarbonisation by sector as a best-effort
Raphaël Thuin, Head of Capital Markets Strategies for Tikehau Capital, says, “We are thrilled to further expand our impact platform with the launch of our high yield impact credit fund. In 2020, commitments to reach net zero emissions from businesses have roughly doubled. The next step is now for impact investing to reach the shores of the fixed income market. We are committed to deploying an engagement strategy contributing to the global initiative for companies to achieve net zero emissions by 2050 or sooner and will seek to give our investors the opportunity to reach both ambitious financial and extra-financial goals through their fixed income allocation.”