Smart Loans are an innovative new alternative fixed income product that can vaccinate you from the low interest rate pandemic. Smart Loans preserve principal while providing a high yield. Seagate has Smart Loans in recycling, affordable housing, solar power, organized buying for the bottom 40% and Covid fighting gloves. Seagate continues to add new programs.
ESG Smart Loans
Innovative and Socially Responsible
Designed to Minimize Credit Risk
Credit risk is the main risk for fixed income investorsSmart Loans are designed to reduce credit risk. They invest in investment grade government programs and/or are collateralized by Letters of Credit as well as physical goods and property, depending on the program. Smart Loans are designed from the ground up to reduce and eliminate risk. Active and passive features are included in the loan design to reduce and manage risk. Programs vary, but credit exposure is investment grade government risk, investment grade bank letter of credit and/or physical goods or property collateral. Insurance is used when possible.
The Seagate Global ESG Smart Loan is designed to not only preserve principal, but also provide lenders annual income ranging from 9% to 15% in US dollars. In today’s risky world of low interest rates and high asset prices, the combination of preservation of principal with higher returns requires innovative thinking, a continuous hallmark of Seagate Global.
Project Pipeline and the Future
As an ESG focused financial organization Seagate's business model is not to maximize Seagate's assets under management, but to assist governments in financing underfunded government programs that help people. This provides Seagate access to government officials at the highest levels and has resulted in the Government of Malaysia asking Seagate to assist in financing 15,000 affordable government employee homes over the next several years worth around $1 billion. Seagate is planning an expansion of the Smart Loan Program to other Asia-Pacific countries for future growth.