Mitsubishi HC Capital UK PLC Raises EUR60m on TreasurySpring’s Platform with First Sustainable Fixed-Term Fund
- The pioneering 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 TreasurySpring’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 innovative platform
London, 14th December, 2023 – Mitsubishi HC Capital UK PLC, one of Britain’s leading providers of consumer lending, asset finance and vehicle leasing, has borrowed more than 60 million euros on TreasurySpring’s platform by issuing the first sustainable short-term cash investment product available to institutions.
Mitsubishi HC Capital UK PLC issued a rolling one-month, unsecured Fixed-Term Fund (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 centred on longer-dated financing without addressing the short-term needs of borrowers and lenders.
Henry Adams, Chief Product Officer at TreasurySpring, said:
“This is a proud moment for TreasurySpring. 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 HC Capital UK PLC 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 Chief Executive Officer, said:
“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.”
TreasurySpring is a London-based fintech company which has developed a ground-breaking FTF platform which offers companies of all sizes access to a range of attractive risk-adjusted cash investment options that were previously reserved for the world’s largest financial 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 $30Bn of excess cash.
Claire Dorrian, Head of Sustainable Finance Capital Markets & Post Trade at LSEG commented:
“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.”
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Founded in 2017, TreasurySpring is a ground-breaking platform revolutionising institutional term cash investment. TreasurySpring makes it easy for companies from FTSE 100 corporations and leading multinationals to series A start-ups and scale-ups to access a simple and secure platform for their cash which delivers higher returns, reduces risk, and enables diversification. Over the past six years, TreasurySpring has built the underlying infrastructure which enables companies through a single digital onboarding to quickly place their excess cash in over 600 regulated and standardised products across seven different currencies. https://treasuryspring.com/
Mitsubishi HC Capital UK PLC is a leading UK based financial services company, authorised and regulated by the Financial Conduct Authority (FCA). It has more than 2,200 employees, £7.6bn of Net Earning Assets and nearly 1.3 million customers across five business divisions, which provide innovative finance solutions to enable consumers and businesses to grow and prosper. It is a wholly owned subsidiary of Mitsubishi HC Capital Inc., one of the world’s largest and most diversified financial groups with over £60bn of assets. To find out more, please visit the website https://www.mitsubishihccapital.co.uk/investors/