Institutional Investors
Short-dated, over-collateralised receivables backed by pledged harvests of smallholder farms in emerging and frontier markets, repaid from delivery or from the insurance payout.
- Target yield p.a.*
- Months tenor*
* Indicative, subject to final documentation.
Real-Asset Exposure to Agricultural Production
Interscale's notes provide exposure to short-dated receivables originated in smallholder agriculture. Capital is deployed at the start of each season to pre-finance weather-protection premiums and is repaid following harvest. Each receivable has two ways to be repaid: from the farmer's delivery in a normal season, or from the parametric insurance payout when extreme weather strikes.
Receivables Originated in Agriculture
Each receivable originates in a smallholder farmer's harvest, pledged in lieu of a cash premium for parametric weather cover and settled at the point of crop delivery.
Risk-Adjusted Return
The return reflects time value and the credit and liquidity profile of the receivables.
Transaction Structure
From origination to settlement within a single crop season.
Origination
Pledged Harvest Quantities
Insured farmers pledge a fixed quantity of harvest in lieu of a cash premium, agreed before the season.
Registration at Delivery
Participating offtakers register each pledge at farm level in a shared receivables register.
Funding
Acquisition at a Discount
Receivables are pooled and acquired at a discount to face value: bilaterally by an anchor investor in the pilot, and subsequently through notes issued by a dedicated issuance vehicle.
Fixed Monetary Claims
A forward agreement with the offtaker converts pledged quantities into monetary claims at a reference price, eliminating commodity price exposure.
Settlement
Settlement from Delivery
Absent a trigger event, the offtaker retains the pledged share from initial deliveries and remits the proceeds to the holders of the receivables.
Settlement from Insurance Payout
Following a trigger event, the farmer receives the payout net of the pledge, and the receivable holders are paid an equivalent amount from the risk pool.
Key Characteristics
Short Duration
Capital is committed for a single crop season, with principal and return settled following harvest. The short tenor limits duration risk and allows capital to be redeployed season by season.
Asset-Backed
Each receivable is secured by a pledged quantity of harvest and is over-collateralised.
Diversified, Low Correlation
Portfolios are pooled across thousands of farms and, as the programme scales, across crops, regions and seasons. Returns are driven by agricultural deliveries rather than financial-market cycles.
Measurable Impact
Proceeds finance weather protection for smallholder households, supporting climate adaptation, food security and financial inclusion.
Target Investors
ILS & Private Debt Funds
Short-dated, asset-backed exposure beyond traditional catastrophe and credit markets.
DFIs & Impact Investors
Financial return with measurable contributions to climate adaptation and food security.
Pension Funds & Insurers
Diversifying, short-duration assets within a transparent, rules-based structure.
Family Offices & Wealth Managers
Short-duration, real-asset exposure with a measurable impact dimension, largely uncorrelated with listed markets.
The information on this page is intended for professional investors. It does not constitute an offer to sell, or a solicitation of an offer to buy, any security or other financial instrument. Target yields are indicative, are not guaranteed and may not be achieved; investments in the notes involve risks, including the loss of capital, for example where weather-related crop losses that do not trigger the parametric index reduce deliveries. Any investment would be made solely on the basis of definitive documentation and in compliance with applicable laws and regulations.
Other Partners in the Ecosystem
Investor Enquiries
We welcome discussions with investors interested in acting as anchor investor in the pilot or in participating in subsequent issuances.
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