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. Smart Loans are socially responsible as the loans are used to finance affordable solar homes in Malaysia for public heroes (nurses, teachers, military, firefighters, etc.). Smart Loans help reduce the affordable housing crisis as well as slow global warming.
ESG Smart Loans
Innovative and Socially Responsible
Government Backed and Risk Managed
Smart Loans invest in official Government of Malaysia affordable government employee housing programs such as MyHome. Repayment is assured by law under the program. Malaysia is an investment grade rated country (A3/A-), thus the chance of default is low. Other risk mitigations include: currency hedging, contractors all risk insurance; no exposure to cost overruns or product liability; Malaysia co-invests 10%-30% in each home; homes are pre-sold prior to construction; repayment is made by the Government of Malaysia’s housing bank.
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.