United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-23174
(Investment Company Act File Number)
Federated Hermes Project and Trade Finance Tender Fund
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 03/31/24
Date of Reporting Period: Six months ended 09/30/23
Item 1. | Reports to Stockholders |
![](https://capedge.com/proxy/N-CSRS/0001623632-23-001509/img0104531e1.gif)
Federated Hermes Project and Trade Finance Tender Fund
Dear Valued Shareholder,
![](https://capedge.com/proxy/N-CSRS/0001623632-23-001509/donahuechrissigsmall.jpg)
Security Type | Percentage of Total Net Assets |
Trade Finance Agreements | 81.7% |
Derivative Contracts2 | 0.9% |
Cash Equivalents3 | 12.1% |
Other Assets and Liabilities—Net4 | 5.3% |
TOTAL | 100% |
1 | See the Fund’s Prospectus for a description of the principal types of securities in which the Fund invests. |
2 | Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
4 | Assets, other than investments in securities and derivative contracts, less liabilities. See Statement of Assets and Liabilities. |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— 81.7% | ||||
Automotive— 0.7% | |||||
$ 4,000,000 | 2 | JSC UzAuto Motors (“UzAuto Motors”), 9.718% (180-DAY AVERAGE SOFR +4.250%), 8/24/2026 | 9/18/2023 | $ 4,000,000 | $ 4,003,016 |
Banking— 11.7% | |||||
EUR 8,500,000 | Akbank T.A.S., 7.154%, 11/2/2023 | 5/8/2023- 5/24/2023 | 9,164,594 | 8,986,626 | |
$10,000,000 | Banco Santander (Brasil) SA, 6.136%, 12/15/2023 | 5/17/2023 | 10,000,000 | 10,000,000 | |
EUR 5,000,000 | 2 | Denizbank AS, 7.309% (3-month EURIBOR +0.034%), 11/22/2023 | 4/24/2023 | 5,513,165 | 5,286,250 |
$12,000,000 | 2 | Joint Stock Commercial Bank Agrobank, 9.820% (SOFR +4.500%), 10/13/2023 | 10/17/2022- 3/7/2023 | 12,000,000 | 12,003,146 |
EUR 3,000,000 | 2 | QNB Finansbank AS/Turkey, 7.245% (6-month EURIBOR +3.475%), 12/1/2023 | 4/24/2023 | 3,310,439 | 3,171,750 |
4,500,000 | 2 | QNB Finansbank AS/Turkey, 7.270% (6-month EURIBOR +3.500%), 5/30/2024 | 5/24/2023 | 4,742,226 | 4,693,787 |
3,000,000 | 2 | The National Bank for Foreign Economic Activity of the Republic of Uzbekistan (“NBU”), 7.218% (6-month EURIBOR +3.400%), 6/18/2024 | 6/18/2021 | 3,583,642 | 3,163,909 |
8,750,000 | 2 | Turikiye Vakiflar Bankasi T.A.O., Turkey, 7.258% (3-month EURIBOR +3.500%), 11/30/2023 | 5/8/2023- 5/18/2023 | 9,446,109 | 9,250,938 |
5,000,000 | Turkiye Ihracat Kredi Bankasi A.S., 7.293%, 11/16/2023 | 5/8/2023 | 5,464,221 | 5,286,251 | |
$ 7,500,000 | Turkiye Ihracat Kredi Bankasi A.S., 8.727%, 9/17/2024 | 9/13/2023 | 7,500,000 | 7,500,000 | |
TOTAL | 69,342,657 | ||||
Basic Industry - Metals/Mining Excluding Steel— 5.0% | |||||
3,200,000 | 2 | China Hongqiao Group Ltd., 9.233% (1-month USLIBOR +3.800%), 3/30/2024 | 6/3/2021 | 3,200,000 | 3,200,000 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Basic Industry - Metals/Mining Excluding Steel— continued | |||||
$ 5,500,000 | 2 | Harmony Gold Mining Co. Ltd., 8.160% (SOFR +3.050%), 6/8/2025 | 4/30/2021 | $ 5,507,949 | $ 5,537,938 |
4,001,421 | Mosaic Fertilizantes P&K Ltda, Brazil and/or Mosaic Feritilizantes Ltd., 6.000%, 10/31/2023 | 5/10/2023 | 3,889,280 | 4,001,421 | |
10,000,000 | 2 | PJSC Acron, 7.143% (1-month USLIBOR +1.700%), 5/18/2026 | 11/26/2021 | 10,000,000 | 9,672,521 |
6,800,000 | 2 | PJSC MMC Norilsk Nickel, 6.834% (90-DAY AVERAGE SOFR +1.400%), 2/20/2025 | 11/30/2020- 10/22/2021 | 6,759,805 | 6,441,884 |
700,000 | 2 | Tasiast Mauritanie Ltd. SA, 8.500% (6-month USLIBOR +0.042%), 12/15/2027 | 10/15/2020 | 700,000 | 700,000 |
TOTAL | 29,553,764 | ||||
Basic Industry - Steel Producers/Products— 1.1% | |||||
6,500,000 | 2 | JSC Uzbek Steel, 9.620% (90- DAY AVERAGE SOFR +4.250%), 8/4/2024 | 8/22/2023 | 6,502,250 | 6,496,926 |
Building & Development— 0.7% | |||||
4,050,000 | 2 | IHS Zambia Ltd., 10.569% (3-month USLIBOR +5.000%), 12/15/2027 | 11/26/2021 | 4,044,825 | 3,912,701 |
Chemicals— 0.6% | |||||
3,273,588 | 2 | Egyptian Ethylene & Derivatives Co. SAE, 9.382% (90-DAY AVERAGE SOFR +4.000%), 9/13/2028 | 9/22/2023 | 3,273,588 | 3,271,557 |
Communications - Telecom Wirelines— 1.5% | |||||
EUR 8,200,000 | 2 | Telekom Srbija a.d. Beograd, 8.720% (6-month EURIBOR +4.950%), 6/1/2026 | 5/26/2023- 5/30/2023 | 8,693,711 | 8,669,451 |
Consumer Goods - Food - Wholesale— 0.8% | |||||
$ 206,250 | 2 | Ghana Cocoa Board, 9.798% (6-month USLIBOR +4.400%), 11/12/2024 | 8/11/2021 | 206,250 | 201,466 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Consumer Goods - Food - Wholesale— continued | |||||
$ 4,397,059 | 2 | International Beverage Tashkent, 10.072% (3-month USLIBOR +4.500%), 12/29/2026 | 12/23/2021- 3/7/2022 | $ 4,397,059 | $ 4,397,059 |
894,737 | 2,3,4,5 | Vicentin SAIC II, 11.570% (3-month USLIBOR +6.000%), 1/15/2024 | 1/8/2018- 2/21/2018 | 894,737 | 134,211 |
TOTAL | 4,732,736 | ||||
Energy - Exploration & Production— 8.2% | |||||
11,000,000 | 2 | Azule Energy Holding Ltd., 9.900% (SOFR +4.500%), 7/29/2029 | 12/19/2022- 10/27/2022 | 10,920,000 | 11,048,603 |
7,500,000 | 2 | Carmo Energy SA, 8.137% (6-month CME Term SOFR +2.500%), 12/23/2027 | 6/30/2023 | 7,500,000 | 7,470,226 |
11,000,000 | 2 | CC Energy Development Ltd., 9.299% (SOFR +3.880%), 7/1/2028 | 8/31/2022 | 11,000,000 | 11,000,000 |
5,000,000 | 2 | SOCAR Energy, 9.178% (6-month USLIBOR +3.450%), 8/11/2026 | 8/11/2021 | 4,957,500 | 5,000,000 |
76,923 | 2 | SOCAR Energy ’18, 7.819% (3-month USLIBOR +2.200%), 11/8/2023 | 11/26/2019 | 76,577 | 76,923 |
3,072,813 | 2 | Sonangol Finance Ltd., 9.681% (1-month USLIBOR +4.250%), 12/20/2023 | 12/16/2022 | 3,045,861 | 3,070,776 |
3,500,000 | 2 | Sonangol Finance Ltd., 10.681% (1-month USLIBOR +5.250%), 9/30/2026 | 9/15/2021 | 3,465,000 | 3,500,000 |
3,920,000 | 2 | Sonangol Finance Ltd., (“SFL”), Inc. in Cayman Islands, a wholly owned subsidiary of Sonangol EP, Term Loan, Series 2025 TF, 9.631% (1-month USLIBOR +4.200%), 1/31/2025 | 5/24/2023 | 3,891,600 | 3,920,000 |
3,333,334 | 2 | State Oil Co Of The Azer, 8.572% (6-month USLIBOR +2.700%), 2/22/2024 | 3/7/2023 | 3,300,000 | 3,333,334 |
TOTAL | 48,419,862 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Energy - Gas Distribution— 3.4% | |||||
$ 4,525,718 | 2 | Papua New Guinea Liquefied Natural Gas Global Co., 9.400% (6-month USLIBOR +3.500%), 6/15/2026 | 4/14/2023 | $ 4,480,461 | $ 4,525,718 |
1,444,632 | 2 | Papua New Guinea Liquefied Natural Gas Global Co., 9.900% (6-month USLIBOR +4.250%), 6/15/2024 | 4/14/2023 | 1,444,632 | 1,444,632 |
12,174,969 | 2 | Venture Global Calcasieu Pass LLC, 8.041% (1-month USLIBOR +2.625%), 8/19/2026 | 1/28/2021- 2/10/2023 | 12,133,882 | 12,174,969 |
2,028,020 | 2 | Venture Global Plaquemines LNG LLC, 7.291% (SOFR +1.975%), 5/25/2029 | 12/15/2022- 9/18/2023 | 2,028,021 | 2,028,020 |
TOTAL | 20,173,339 | ||||
Energy - Integrated Energy— 1.0% | |||||
1,755,674 | 2 | Staatsolie Maatschappij Suriname NV, 11.112% (3-month USLIBOR +2.500%), 1/25/2028 | 6/30/2021 | 1,755,674 | 1,755,674 |
3,931,516 | 2 | Staatsolie Maatschappij Suriname NV, 11.112% (90-DAY AVERAGE SOFR +2.600%), 1/25/2028 | 6/30/2021 | 3,931,516 | 3,931,516 |
TOTAL | 5,687,190 | ||||
Energy - Oil Field Equipment & Services— 1.6% | |||||
9,041,587 | 2 | Alfa Lula Alto S.a.r.l, 7.420% (90- DAY AVERAGE SOFR +2.100%), 1/15/2028 | 6/16/2023 | 8,951,672 | 8,951,569 |
796,852 | 2 | Alfa Lula Alto S.a.r.l, 7.620% (90- DAY AVERAGE SOFR +2.300%), 12/15/2029 | 6/16/2023 | 780,914 | 782,948 |
TOTAL | 9,734,517 | ||||
Energy - Oil Refining and Marketing— 4.6% | |||||
4,700,000 | 2 | Trafigura Environmental Solutions S.a.r.l, 7.230% (30-DAY AVERAGE SOFR +1.900%), 9/5/2024 | 9/6/2023 | 4,700,000 | 4,699,460 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Energy - Oil Refining and Marketing— continued | |||||
$ 5,750,000 | 2 | Trafigura Pte Ltd. NZ, 7.328% (1-month USLIBOR +2.000%), 5/5/2024 | 12/20/2022- 1/20/2023 | $ 5,750,000 | $ 5,750,000 |
5,080,353 | 2 | Yinson Bergenia Production, 9.269% (90-DAY AVERAGE SOFR +3.900%), 6/10/2028 | 3/6/2023- 9/6/2023 | 5,080,353 | 5,080,353 |
11,841,600 | 2 | Yinson Boronia Production, 8.562% (3-month USLIBOR +3.250%), 8/11/2026 | 12/17/2021- 8/19/2022 | 11,841,600 | 11,841,600 |
TOTAL | 27,371,413 | ||||
Food Wholesaling— 0.7% | |||||
4,148,890 | Sysco Corp. and Sysco Merchandising and Supply Chain Services, Inc., 6.404%, 11/7/2023 | 7/17/2023- 9/6/2023 | 4,114,247 | 4,144,784 | |
Foreign Sovereign— 16.6% | |||||
5,000,000 | African Export-Import Bank (Afreximbank), 6.187%, 4/29/2024 | 5/1/2023 | 5,000,000 | 5,000,000 | |
EUR 6,000,000 | 2 | Bank of Industry Ltd. - Central Bank of Nigeria, 5.415% (3-month EURIBOR +1.650%), 7/20/2024 | 9/1/2023 | 6,402,561 | 6,265,426 |
353,200 | 2 | Bank of Industry Ltd. - Central Bank of Nigeria, 8.315% (3-month EURIBOR +4.500%), 2/14/2025 | 3/17/2020 | 387,531 | 373,421 |
$ 667,200 | 2 | Bank of Industry Ltd. - Central Bank of Nigeria, 11.669% (3-month USLIBOR +6.000%), 12/11/2023 | 4/21/2021 | 673,872 | 667,200 |
EUR 3,000,000 | 2 | Benin, Government of, 7.598% (6-month EURIBOR +3.950%), 4/30/2027 | 6/29/2023 | 3,255,808 | 3,154,278 |
4,800,000 | Benin, Government of, 8.182%, 12/21/2026 | 12/21/2021 | 5,415,841 | 4,763,930 | |
5,200,000 | 2 | Benin, Government of, 8.182% (6-month EURIBOR +4.300%), 12/21/2026 | 12/23/2021 | 5,893,941 | 5,489,112 |
5,383,155 | Burkina Faso, Government of, 3.600%, 3/1/2024 | 3/22/2023- 5/31/2023 | 5,826,554 | 5,691,341 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Foreign Sovereign— continued | |||||
EUR 5,000,000 | Cote D’Ivoire, Government of, 6.739%, 5/22/2024 | 6/6/2023 | $ 5,265,247 | $ 5,286,251 | |
10,000,000 | 2 | Cote D’Ivoire, Government of, 7.443% (3-month EURIBOR +0.029%), 12/7/2024 | 5/17/2022 | 10,544,469 | 10,572,501 |
4,000,000 | 2 | Cote D’Ivoire, Government of, 7.884% (1-month EURIBOR +4.050%), 12/13/2023 | 3/9/2023 | 4,222,766 | 4,229,000 |
3,889,200 | Cote D’Ivoire, Government of, 8.880%, 12/31/2025 | 9/3/2021 | 3,398,215 | 3,999,803 | |
$ 365,254 | Egypt, Government of, 3.680%, 11/24/2023 | 10/5/2022- 11/20/2022 | 365,254 | 360,839 | |
9,984,254 | Egypt, Government of, 7.886%, 8/27/2024 | 1/3/2023- 8/24/2023 | 9,956,754 | 9,434,103 | |
6,000,000 | 2 | Energy Development Oman, 7.380% (3-month USLIBOR +2.950%), 8/14/2028 | 9/28/2021 | 5,969,544 | 6,000,000 |
EUR 3,500,000 | 2 | Minister of Finance of Ukraine, 7.967% (3-month EURIBOR +4.100%), 9/1/2026 | 8/25/2021 | 4,114,075 | 2,928,465 |
3,500,000 | 2 | MOF Ivory Coast, 7.722% (6-month EURIBOR +0.037%), 12/28/2023 | 2/3/2023 | 3,778,074 | 3,709,535 |
8,000,000 | 2 | Senegal, Government of, 8.284% (3-month EURIBOR +4.350%), 3/1/2026 | 6/9/2023 | 8,596,798 | 8,458,001 |
$ 125,000 | 2 | Sharjah Govt., 6.871% (3-month USLIBOR +1.200%), 3/4/2024 | 9/21/2020 | 124,375 | 125,000 |
EUR 1,938,256 | Societe Nationale d’Electricite du Senegal, 4.450%, 10/2/2023 | 4/3/2023 | 2,113,960 | 2,049,196 | |
$10,000,000 | 2 | The Federal Republic of Nigeria acting by and through the Federal Ministry of Finance, Budget and National Planning of Nigeria (“MOF”), 11.330% (3-month USLIBOR +5.950%), 12/30/2023 | 9/1/2022- 1/19/2023 | 10,000,000 | 10,000,000 |
TOTAL | 98,557,402 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Government Agency— 1.8% | |||||
EUR 9,979,180 | Republic of Senegal, represented by the Ministry of Economy, Planning & Corporation, 6.745%, 4/5/2024 | 1/11/2023- 4/17/2023 | $10,829,149 | $ 10,440,924 | |
Lease— 2.3% | |||||
$ 4,673,805 | 2 | AerCap Holdings NV, 7.102% (3-month USLIBOR +1.450%), 12/31/2025 | 11/23/2021 | 4,677,025 | 4,669,989 |
9,000,000 | 2 | Far East Horizon Ltd., 7.070% (3-month USLIBOR +1.400%), 9/10/2024 | 9/15/2021 | 9,000,000 | 8,845,593 |
TOTAL | 13,515,582 | ||||
Machinery— 1.7% | |||||
7,973,955 | Dover Corp. and its subsidiaries, 5.885%, 1/18/2024 | 7/17/2023- 9/21/2023 | 7,856,623 | 7,963,315 | |
2,388,759 | MTD Products, Inc. and other subsidiaries of the Parent, 6.560%, 12/27/2023 | 9/12/2023 | 2,344,454 | 2,352,925 | |
TOTAL | 10,316,240 | ||||
Metals & Mining— 1.7% | |||||
10,000,000 | 2 | Navoi Mining and Metallurgical Co., 10.094% (90-DAY AVERAGE SOFR +4.760%), 4/20/2027 | 5/18/2022 | 9,999,500 | 10,000,000 |
Oil Field Services— 1.5% | |||||
9,129,256 | 2 | Sonasing Xikomba Ltd. (“Xikomfa”), Bermuda, Inc., 7.926% (3-month USLIBOR +2.300%), 5/29/2026 | 5/17/2022- 11/4/2022 | 9,131,825 | 9,129,256 |
Packaging— 0.8% | |||||
5,028,797 | Westrock Shared Services, LLC and other subsidiaries of the Parent, 6.396%, 12/4/2023 | 8/10/2023 | 4,939,472 | 5,027,768 | |
Supranational— 3.2% | |||||
9,000,000 | 2 | Africa Finance Corp., 6.059% (3-month USLIBOR +0.900%), 1/17/2025 | 3/11/2022 | 9,000,000 | 9,000,000 |
5,000,000 | 2 | Eastern and Southern African Trade and Development Bank, 6.772% (90-DAY AVERAGE SOFR +1.350%), 8/23/2024 | 2/9/2023 | 4,936,750 | 4,934,946 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Supranational— continued | |||||
$ 5,000,000 | 2 | Eastern and Southern African Trade and Development Bank, 6.872% (90-DAY AVERAGE SOFR +1.450%), 8/23/2025 | 7/18/2023 | $ 4,876,750 | $ 4,936,060 |
TOTAL | 18,871,006 | ||||
Technology & Electronics - Tech Hardware & Equipment— 0.8% | |||||
4,845,168 | Datatec PLC, 5.650%, 12/1/2023 | 9/1/2023- 9/18/2023 | 4,799,430 | 4,844,511 | |
Telecommunications - Wireless— 4.4% | |||||
10,000,000 | 2 | IHS Holding Ltd., Cayman Islands, Inc., 9.120% (SOFR +3.750%), 10/28/2025 | 12/13/2022 | 9,795,000 | 9,838,401 |
7,000,000 | 2 | Phoenix Tower International Spain ETVE, S.L.U., 9.390% (3-month EURIBOR +3.500%), 6/26/2028 | 11/21/2022 | 6,951,000 | 7,031,566 |
EUR 8,750,000 | 2 | TDC Net A/S, 6.106% (3-month EURIBOR +2.300%), 2/2/2027 | 3/28/2023 | 9,491,567 | 9,250,938 |
TOTAL | 26,120,905 | ||||
Transportation - Airlines— 0.2% | |||||
$ 1,232,988 | 2 | Avolon Aerospace, 3.026% (1-month USLIBOR +1.600%), 3/31/2025 | 11/27/2019 | 1,238,844 | 1,183,766 |
Transportation - Transport Infrastructure/Services— 2.1% | |||||
EUR 7,500,000 | 2 | Fraport TAV Antalya Yatirim Yapim ve Isletme (SPV, Turkey), 9.433% (6-month EURIBOR +5.500%), 3/25/2024 | 9/1/2022 | 7,461,002 | 7,970,062 |
$ 4,375,000 | 2 | Impala Terminals Switzerland SAR, 9.200% (SOFR +1.900%), 8/13/2025 | 3/28/2023 | 4,288,958 | 4,303,048 |
TOTAL | 12,273,110 | ||||
Utility - Electric— 1.2% | |||||
EUR 7,000,000 | 2 | Eesti Energia AS, 8.428% (3-month EURIBOR +4.500%), 5/11/2028 | 5/5/2023 | 7,712,249 | 7,400,751 |
Foreign Currency Par Amount, Principal Amount or Shares | Acquisition Date1 | Acquisition Cost in U.S. Dollars1 | Value in U.S. Dollars | ||
1 | TRADE FINANCE AGREEMENTS— continued | ||||
Utility - Electric-Generation— 1.8% | |||||
$ 4,620,000 | 2 | Karadeniz Powership Osman Khan Co., Ltd., 11.400% (6-month USLIBOR +5.500%), 9/15/2026 | 10/14/2021 | $ 4,573,800 | $ 4,617,911 |
1,666,667 | 2 | Karpower International B.V., 13.843% (6-month USLIBOR +8.500%), 11/16/2023 | 5/25/2022 | 1,667,416 | 1,665,058 |
2,024,000 | 2 | Karpower International DMCC (opco, Dubai) (“Karpower Reef”), 11.890% (SOFR +6.500%), 6/30/2026 | 3/20/2023 | 1,998,700 | 2,010,719 |
1,464,354 | 2 | Karpowership, 10.429% (6-month USLIBOR +4.500%), 2/28/2025 | 7/30/2020- 7/8/2021 | 1,448,065 | 1,467,371 |
250,879 | 2 | SMN Barka Power Co. S.A.O.C., 5.300% (6-month USLIBOR +1.250%), 3/28/2024 | 12/2/2020 | 230,809 | 248,877 |
692,308 | 2 | The Sharjah Electricity and Water Authority, 7.621% (1-month USLIBOR +1.950%), 12/23/2025 | 12/21/2020 | 691,096 | 692,308 |
TOTAL | 10,702,244 | ||||
TOTAL TRADE FINANCE AGREEMENTS (IDENTIFIED COST $490,946,771) | 483,897,378 | ||||
INVESTMENT COMPANY— 12.1% | |||||
71,838,020 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.42%6 (IDENTIFIED COST $71,815,437) | 71,838,020 | |||
TOTAL INVESTMENT IN SECURITIES—93.8% (IDENTIFIED COST $562,762,208)7 | 555,735,398 | ||||
OTHER ASSETS AND LIABILITIES - NET—6.2%8 | 36,441,907 | ||||
TOTAL NET ASSETS—100% | $592,177,305 |
Settlement Date | Counterparty | Foreign Currency Units to Deliver/Receive | In Exchange For | Net Unrealized Appreciation/ (Depreciation) | |
Contracts Purchased: | |||||
10/16/2023 | Morgan Stanley Capital | 71,829,750 | EUR | $75,982,310 | $(2,121,007) |
Contracts Sold: | |||||
10/16/2023 | Wells Fargo Bank | 71,829,750 | EUR | $75,982,310 | $3,060,511 |
3/28/2024 | State Street Bank & Trust Co. | 73,886,000 | EUR | $78,781,746 | $2,265,522 |
3/28/2024 | Morgan Stanley Capital | 76,239,000 | EUR | $81,290,658 | $2,317,116 |
3/28/2024 | State Street Bank & Trust Co. | 2,300,000 | EUR | $2,452,400 | $40,805 |
NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS | $5,562,947 |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | |
Value as of 3/31/2023 | $90,363,791 |
Purchases at Cost | $232,980,373 |
Proceeds from Sales | $(251,520,668) |
Change in Unrealized Appreciation/Depreciation | $7,138 |
Net Realized Gain/(Loss) | $7,386 |
Value as of 9/30/2023 | $71,838,020 |
Shares Held as of 9/30/2023 | 71,838,020 |
Dividend Income | $1,696,672 |
1 | Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At September 30, 2023, these restricted securities amounted to $483,897,378, which represented 81.7% of total net assets. |
2 | Floating/variable note with current rate and current maturity or next reset date shown. |
3 | Issuer in default. |
4 | Market quotations and price valuations are not available. Fair value determined using significant unobservable inputs in accordance with procedures established by and under the supervision of the Fund’s Adviser acting through its Valuation Committee (“Valuation Committee”). |
5 | Non-income-producing security. |
6 | 7-day net yield. |
7 | Also represents cost for federal tax purposes. |
8 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
The following is a summary of the inputs used, as of September 30, 2023, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Trade Finance Agreements | $— | $— | $483,897,378 | $483,897,378 |
Investment Company | 71,838,020 | — | — | 71,838,020 |
TOTAL SECURITIES | $71,838,020 | $— | $483,897,378 | $555,735,398 |
Other Financial Instruments1 | ||||
Assets | $— | $7,683,954 | $— | $7,683,954 |
Liabilities | — | (2,121,007) | — | (2,121,007) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $— | $5,562,947 | $— | $5,562,947 |
1 | Other financial instruments are foreign exchange contracts. |
Investments in Trade Finance Agreements | |
Balance as of 3/31/2023 | $472,021,560 |
Accreted/amortized discount/premiums | 1,580,950 |
Realized gain (loss) | (498,510) |
Change in unrealized appreciation/depreciation | (3,210,360) |
Purchases | 293,324,694 |
(Sales) | (279,320,956) |
Investments in Trade Finance Agreements | |
Balance as of 9/30/2023 | $483,897,378 |
Total change in unrealized appreciation/depreciation attributable to investments still held at 9/30/2023 | $(3,681,913) |
The following acronym(s) are used throughout this portfolio: | ||
EUR | —Euro | |
EURIBOR | —Euro Interbank Offered Rate | |
JSC | —Joint Stock Company | |
LIBOR | —London Interbank Offered Rate | |
SOFR | —Secured Overnight Financing Rate |
Six Months Ended (unaudited) 9/30/2023 | Year Ended March 31, | |||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $9.87 | $9.80 | $9.92 | $9.71 | $9.98 | $10.00 |
Income From Investment Operations: | ||||||
Net investment income (loss)1 | 0.38 | 0.46 | 0.19 | 0.25 | 0.39 | 0.45 |
Net realized and unrealized gain (loss) | 0.04 | 0.12 | (0.11) | 0.22 | (0.27) | (0.01) |
TOTAL FROM INVESTMENT OPERATIONS | 0.42 | 0.58 | 0.08 | 0.47 | 0.12 | 0.44 |
Less Distributions: | ||||||
Distributions from net investment income | (0.38) | (0.51) | (0.20) | (0.26) | (0.38) | (0.45) |
Distributions from net realized gain | — | (0.00)2 | (0.00)2 | (0.00)2 | (0.01) | (0.01) |
TOTAL DISTRIBUTIONS | (0.38) | (0.51) | (0.20) | (0.26) | (0.39) | (0.46) |
Net Asset Value, End of Period | $9.91 | $9.87 | $9.80 | $9.92 | $9.71 | $9.98 |
Total Return3 | 4.26% | 6.07% | 0.80% | 4.91% | 1.13% | 4.42% |
Ratios to Average Net Assets: | ||||||
Net expenses4 | 0.41%5 | 0.41% | 0.41% | 0.71% | 0.71% | 0.70% |
Net investment income | 7.66%5 | 4.70% | 1.94% | 2.57% | 3.94% | 4.44% |
Expense waiver/reimbursement6 | 0.21%5 | 0.24% | 0.22% | 0.44% | 0.32% | 0.29% |
Supplemental Data: | ||||||
Net assets, end of period (000 omitted) | $592,177 | $577,272 | $560,685 | $39,835 | $63,873 | $51,680 |
Portfolio turnover7 | 26% | 52% | 36% | 47% | 73% | 57% |
1 | Per share numbers have been calculated using the average shares method. |
2 | Represents less than $0.01. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
7 | Securities that mature are considered sales for purposes of this calculation. |
September 30, 2023 (unaudited)
Assets: | |
Investment in securities, at value including $71,838,020 of investments in affiliated holdings* (identified cost $562,762,208, including $71,815,437 of identified cost in affiliated holdings) | $555,735,398 |
Cash denominated in foreign currencies (identified cost $1,216,569) | 1,212,573 |
Income receivable | 6,642,131 |
Income receivable from affiliated holdings | 367,592 |
Receivable for investments sold | 22,808,660 |
Unrealized appreciation on foreign exchange contracts | 7,683,954 |
Total Assets | 594,450,308 |
Liabilities: | |
Unrealized depreciation on foreign exchange contracts | 2,121,007 |
Payable to bank | 1,836 |
Payable for investment adviser fee (Note 5) | 9,366 |
Payable for auditing fees | 24,537 |
Payable for transfer agent fees | 35,428 |
Accrued expenses (Note 5) | 80,829 |
Total Liabilities | 2,273,003 |
Net assets for 59,775,249 shares outstanding | $592,177,305 |
Net Assets Consist of: | |
Paid-in capital | $594,288,604 |
Total distributable earnings (loss) | (2,111,299) |
Total Net Assets | $592,177,305 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
$592,177,305 ÷ 59,775,249 shares outstanding, no par value, unlimited shares authorized | $9.91 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended September 30, 2023 (unaudited)
Investment Income: | |
Interest | $21,992,072 |
Dividends received from affiliated holdings* | 1,696,672 |
TOTAL INCOME | 23,688,744 |
Expenses: | |
Investment adviser fee (Note 5) | 1,467,868 |
Administrative fee (Note 5) | 450 |
Custodian fees | 11,910 |
Transfer agent fees | 68,080 |
Directors’/Trustees’ fees (Note 5) | 4,950 |
Auditing fees | 38,262 |
Legal fees | 8,569 |
Portfolio accounting fees | 170,757 |
Share registration costs | 24,509 |
Printing and postage | 9,295 |
Miscellaneous (Note 5) | 20,258 |
TOTAL EXPENSES | 1,824,908 |
Waiver/reimbursement of investment adviser fee (Note 5) | (621,379) |
Net expenses | 1,203,529 |
Net investment income | 22,485,215 |
Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Foreign Exchange Contracts: | |
Net realized loss on investments (including net realized gain of $7,386 on sales of investments in affiliated holdings*) | (491,124) |
Net realized gain on foreign currency transactions | 81,302 |
Net realized loss on foreign exchange contracts | (44,598) |
Net change in unrealized depreciation of investments (including net change in unrealized appreciation of $7,138 of investments in affiliated holdings*) | (3,203,222) |
Net change in unrealized depreciation of translation of assets and liabilities in foreign currency | (13,116) |
Net change in unrealized appreciation of foreign exchange contracts | 5,543,810 |
Net realized and unrealized gain (loss) on investments, foreign currency transactions and foreign exchange contracts | 1,873,052 |
Change in net assets resulting from operations | $24,358,267 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 9/30/2023 | Year Ended 3/31/2023 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $22,485,215 | $26,831,968 |
Net realized gain (loss) | (454,420) | 1,109,941 |
Net change in unrealized appreciation/depreciation | 2,327,472 | 5,437,987 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 24,358,267 | 33,379,896 |
Distributions to Shareholders | (22,136,794) | (29,259,498) |
Share Transactions: | ||
Proceeds from sale of shares | — | 20,000,000 |
Net asset value of shares issued to shareholders in payment of distributions declared | 12,683,489 | 16,367,790 |
Cost of shares redeemed | — | (23,900,996) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 12,683,489 | 12,466,794 |
Change in net assets | 14,904,962 | 16,587,192 |
Net Assets: | ||
Beginning of period | 577,272,343 | 560,685,151 |
End of period | $592,177,305 | $577,272,343 |
Six Months Ended September 30, 2023 (unaudited)
Operating Activities: | |
Change in net assets resulting from operations | $24,358,267 |
Adjustments to Reconcile Change in Net Assets Resulting From Operations to Net Cash Provided By Operating Activities: | |
Purchase of investment securities | (293,324,694) |
Proceeds from disposition of investment securities | 279,320,956 |
Sale of short-term investments, net | 18,540,295 |
Amortization/accretion of premium/discount, net | (1,580,950) |
Increase in income receivable | (1,941,772) |
Increase in receivable for investments sold | (13,085,544) |
Decrease in accrued expenses | (68,476) |
Net realized loss on investments | 491,124 |
Net change in unrealized appreciation/depreciation of investments | 3,203,222 |
Net change in unrealized appreciation/depreciation of foreign exchange contracts | (5,543,810) |
Net Cash Provided By Operating Activities | 10,368,618 |
Financing Activities: | |
Increase in cash overdraft | 1,836 |
Income distributions to participants | (9,453,305) |
Net Cash Used by Financing Activities | (9,451,469) |
Increase in cash | 917,149 |
Cash at beginning of year | 295,424 |
Cash at end of year | $1,212,573 |
Fair Value of Derivative Instruments | ||||
Assets | Liabilities | |||
Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||||
Foreign exchange contracts | Unrealized appreciation on foreign exchange contracts | $7,683,954 | Unrealized depreciation on foreign exchange contracts | $2,121,007 |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Foreign Exchange Contracts | |
Foreign exchange contracts | $(44,598) |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Foreign Exchange Contracts | |
Foreign exchange contracts | $5,543,810 |
Six Months Ended 9/30/2023 | Year Ended 3/31/2023 | |
Shares sold | — | 2,027,374 |
Shares issued to shareholders in payment of distributions declared | 1,280,495 | 1,683,385 |
Shares redeemed | — | (2,400,406) |
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | 1,280,495 | 1,310,353 |
Purchases | $97,148,575 |
Sales | $90,848,463 |
Country | Percentage of Total Net Assets |
Turkey | 9.1% |
Brazil | 8.1% |
Uzbekistan | 6.8% |
Nigeria | 6.1% |
United States | 5.7% |
Angola | 5.2% |
Ivory Coast | 4.7% |
Senegal | 3.8% |
Egypt | 3.0% |
Oman | 2.9% |
Russia | 2.7% |
Benin | 2.3% |
China | 2.0% |
Singapore | 1.8% |
Mauritius | 1.7% |
Denmark | 1.6% |
Serbia | 1.5% |
Azerbaijan | 1.4% |
Estonia | 1.2% |
Chile | 1.2% |
Papua New Guinea | 1.0% |
Ireland | 1.0% |
Burkina Faso | 1.0% |
Suriname | 1.0% |
South Africa | 0.9% |
United Kingdom | 0.8% |
Ghana | 0.8% |
Switzerland | 0.7% |
Zambia | 0.7% |
Ukraine | 0.5% |
New Caledonia | 0.3% |
Saudi Arabia | 0.1% |
Mauritania | 0.1% |
Argentina | 0.0%1 |
1 | Represents less than 0.1%. |
Beginning Account Value 4/1/2023 | Ending Account Value 9/30/2023 | Expenses Paid During Period1 | |
Actual | $1,000 | $1,042.60 | $2.09 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,022.95 | $2.07 |
1 | Expenses are equal to the Fund’s annualized net expense ratio of 0.41%, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half-year period). |
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
![](https://capedge.com/proxy/N-CSRS/0001623632-23-001509/edelivery.jpg)
![](https://capedge.com/proxy/N-CSRS/0001623632-23-001509/fhilogok11p.jpg)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
Item 2. | Code of Ethics |
Not Applicable
Item 3. | Audit Committee Financial Expert |
Not Applicable
Item 4. | Principal Accountant Fees and Services |
Not Applicable
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Effective July 27, 2023, Kazaur Rahman was added as a portfolio manager of the registrant.
Kazaur Rahman, Portfolio Manager
Kazaur Rahman, ACA, Portfolio Manager, has been the registrant’s portfolio manager since July of 2023.
Mr. Rahman is responsible for providing research and advice on sector allocation and security selection. He has been with the Adviser or an affiliate since 2019; has worked in financial services since 2005; has worked in investment management since 2019; has managed investment portfolios since 2023. Previous associations include roles with: Deutsche Bank; VTB Capital; Bank of America; PricewaterhouseCoopers (PwC). Education: BSc, University of London.
Types of Accounts Managed by Kazaur Rahman | Total Number of Additional Accounts Managed/Total Assets* |
Registered Investment Companies | 4/$737.6 million |
Other Pooled Investment Vehicles | 0/$0 |
Other Accounts | 0/$0 |
*None of the Accounts has an advisory fee that is based on the performance of the account.
Dollar value range of shares owned in the Fund: None.
Kazaur Rahman is paid a fixed base salary and a variable annual incentive. Base salary is determined within a market competitive position-specific salary range, based on the portfolio manager's experience and performance. The annual incentive amount is determined based primarily on Investment Product Performance (IPP), and may also include a discretionary component based on a variety of factors deemed relevant, such as financial measures and performance and is paid entirely in cash. The total combined annual incentive opportunity is intended to be competitive in the market for this portfolio manager role.
IPP is measured on a rolling one, three and four calendar year pre-tax gross total return basis versus the Fund's benchmark (i.e., ICE BofA US Dollar 1-Month Deposit Offered Rate Constant Maturity Index). Performance periods are adjusted if a portfolio manager has been managing an account for less than five years; accounts with less than one year of performance history under a portfolio manager may be excluded.
For purposes of calculating the annual incentive amount, each account managed by the portfolio manager currently is categorized into one of two IPP groups (which may be adjusted periodically). Within each performance measurement period and IPP group, IPP currently is calculated on the basis of an assigned weighting to each account managed by the portfolio manager and included in the IPP groups. At the account level, the weighting assigned to the Fund is greater than or equal to the weighting assigned to other accounts used to determine IPP (but can be adjusted periodically). Additionally, a portion of Mr. Rahman’s IPP score is based on the performance of the accounts for which he provides research and analytic support. A portion of the bonus tied to the IPP score may be adjusted based on management's assessment of overall contributions to account performance and any other factors as deemed relevant.
Any individual allocations from the discretionary pool may be determined, by executive management on a discretionary basis using various factors, such as, for example, on a product, strategy or asset class basis, and considering overall contributions and any other factors deemed relevant (and may be adjusted periodically).
In addition, Mr. Rahman was awarded a grant of restricted Federated Hermes stock. Awards of restricted stock are discretionary and are made in variable amounts based on the subjective judgment of Federated Hermes’ senior management.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Exhibits |
(a)(1) Code of Ethics - Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Hermes Project and Trade Finance Tender Fund
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date November 22, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue
Principal Executive Officer
Date November 22, 2023
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date November 22, 2023