Scottish Mortgage Investment Trust PLC issues debt to top up war
The investment trust has raised roughly £294 million by issuing long-term, fixed rate, senior, unsecured private placement notes, denominated in US dollars.
Scottish Mortgage Investment Trust PLC (LSE:SMT) has raised US$400mln in long-term borrowings through the issue of three loan notes, with shares in the tech-focused trust down by a quarter in the past month and a half.
The first note, for US$175mln, is for 30-years and carries a coupon of 2.99%; the second, which is repayable in 35 years time, is for US$110mln and carries a coupon of 3.04% while the third is a 40-year note with a coupon of 3.09%.
“Once again the company has issued long-term private placement debt at attractive rates. This is reflective of the enduring strength of Scottish Mortgage’s proposition and should enhance shareholders’ returns over the coming decades,” said Fiona McBain, the chair of Scottish Mortgage.
SMT shares have fallen over 25% from above £15 to £11.25p since the start of December, with US tech stocks in particular wobbling as investors worry about US interest rate hikes.
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