Brit’s Ki secures $130m in sustainability-linked funds at Lloyd’s to fund growth

Specialty re/insurer  Brit's first fully digital and algorithmically-driven  Lloyd’s syndicate  Ki has entered into a $130 million sustainability-linked letter of credit agreement with a trio of banks to support the growth of Syndicate 1618.

It is led by Barclays Bank alongside Sumitomo Mitsui Banking Corporation and Natwest Bank.

The facility is linked to the Environmental, Social, and Governance (ESG) rating of the Ki Funds at Lloyd’s investment portfolios, and also for Syndicate 1618 assets, which have a lower carbon intensity target than the benchmark.

Ki stated that this builds on the investment guidelines it has established for its third-party managers, which have incorporated ESG principles and targets.

The pricing Ki pays for the facility will depend on the compliance of Ki’s investment portfolios with these ESG targets.

Mark Allan (pictured), chief executive officer of Ki, said: “As we continue to grow, building a sustainable footprint and having a positive impact is an important priority for Ki. We are therefore pleased to announce this facility, which brings together our own ESG objectives with those of our capital providers and Lloyd’s.”

Burkhard Keese, CFO at Lloyd’s, commented: “Responsible investing is an important part of Lloyd’s ESG strategy and we are therefore delighted to see Ki complete this innovative facility that brings ESG requirements to the forefront of its investment approach.”

Marco DeBenedictis, head of sustainable & transition finance at Barclays Corporate Banking, said: “We are proud to support institutions who have ESG at the core of their strategy and Ki is a prime example of this. Creating new financing packages supporting responsible practices is something that we will continue to do with great focus, as well as continuing to support innovative solutions coming out of Lloyd’s.”