Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

First Sentier Investors

  •   30 April 2021
  •      
  •   

First Sentier Investors launches private debt capability in collaboration with MUFG Bank

Friday 30 April 2021: With the support of MUFG Bank, Ltd., (MUFG Bank),?First Sentier Investors has launched a private debt capability focused initially on loans to the renewable energy sector.

Leveraging MUFG Bank’s strengths as a leader in project finance and debt capital markets for ESG/sustainability-linked financing, and First Sentier Investors position as a leading global fund manager with A$237 billion in AUM, the new initiative is the latest commitment from Mitsubishi UFJ Financial Group, Inc. (MUFG) as a part of its broader group-wide strategic imperative around ESG.

First Sentier Investors’ sustainable debt strategy has already attracted a cornerstone investor commitment through a standalone First Sentier Investors managed trust structure. The first tranche of renewable loans settled in April.

The strategy will be led by Tony Togher, Head of Fixed Income, Short Term Investments & Global Credit at First Sentier Investors. Mr Togher said the collaboration with MUFG Bank in sourcing potential loans leverages the firm’s strong track record in credit risk.

"First Sentier Investors has established a reputation for conservative credit risk oversight, portfolio construction expertise and strong institutional relationships. In turn, MUFG Bank brings its scale and experience as one of the largest lenders to the renewables sector in the Asia-Pacific. The initiative demonstrates how we can collaborate with our shareholder and its subsidiaries for the benefit of clients,” he said.

MUFG Bank is already one of the largest lenders to the renewables sector in the Asia-Pacific region, with a strong pipeline of opportunities.

Siong Ooi, MUFG Bank’s Co-Head of Debt Capital Markets, said, “The successful launch of this initiative represents another exciting step forward for MUFG’s sustainability financing vision by delivering on two key strategic priorities; those being an absolute commitment to ESG/ sustainability-linked financing, as well as creating new channels for the distribution of loan assets. We anticipate that there will be strong investor demand for this type of asset. MUFG Bank will seek to originate and structure future investment opportunities for First Sentier Investors to meet this demand.”

The establishment of the private debt capability means First Sentier Investors will be able to offer its investor base exposure to a diversified portfolio of ESG/sustainability-linked loan assets, and strategic access to the loan asset class, beyond the traditional bank market.

“With the renewable energy sector in Australia growing rapidly, we are pleased to provide our clients with a debt-based investment product that taps into the transition from a fossil fuel-driven economy to a low-carbon economy,” Mr. Togher said.

MUFG has publicly committed to investing JPY20 trillion yen (A$238 billon) into sustainability related financing globally by 2030. Already well ahead of schedule with 19% of this target being achieved in its first year (FY2019), MUFG recently announced that it has raised this target to JPY35 trillion yen (A$417 billion).

– ENDS – 

 

  •   30 April 2021
  •      
  •   
banner

Most viewed in recent weeks

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

13 million spare bedrooms: Rethinking Australia’s housing shortfall

We don’t have a housing shortage; we have housing misallocation. This explores why so many bedrooms go unused, what’s been tried before, and five things to unlock housing capacity – no new building required.

Latest Updates

3 ways to fix Australia’s affordability crisis

Our cost-of-living pressures go beyond the RBA: surging house prices, excessive migration, and expanding government programs, including the NDIS, are fuelling inflation, demanding bold, structural solutions.

Superannuation

The Division 296 tax is still a quasi-wealth tax

The latest draft legislation may be an improvement but it still has the whiff of a wealth tax about it. The question remains whether a golden opportunity for simpler and fairer super tax reform has been missed.

Superannuation

Is it really ‘your’ super fund?

Your super isn’t a bank account you own; it’s a trust you merely benefit from. So why would the Division 296 tax you personally on assets, income and gains you legally don’t own?

Shares

Inflation is the biggest destroyer of wealth

Inflation consistently undermines wealth, even in low-inflation environments. Whether or not it returns to target, investors must protect portfolios from its compounding impact on future living standards.

Shares

Picking the next sector winner

Global equity markets have experienced stellar returns in 2024 and 2025 led, in large part, by the boom in AI. Which sector could be the next star in global markets? This names three future winners.

Infrastructure

What investors should expect when investing in infrastructure: yield

The case for listed infrastructure is built on stable earnings and cash flows, which have sustained 4% dividend yields across cycles and supported consistent, inflation-linked long-term returns.

Investment strategies

Valuing AI: Extreme bubble, new golden era, or both

The US stock market sits in prolonged bubble territory, driven by AI enthusiasm. History suggests eventual mean reversion, reminding investors to weigh potential risks against current market optimism.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.