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Foreign & Colonial takes on long-term debt

 Foreign & Colonial Investment Trust has agreed to issue fixed rate senior unsecured private placement notes in tranches of (i) GBP25 million principal with a 12 year tenor, at a coupon of 2.80% and (ii) GBP50m principal with a 15 year tenor, at a coupon of 3.16%.  The funding date for the notes is expected to be 1st June 2016.

The purpose of this transaction is to obtain fixed rate long-dated Sterling denominated financing, which is unsecured, at pricing levels that the Company considers to be highly attractive. This funding will also have the beneficial effect of achieving greater balance in the maturity profile of the company’s liabilities. There has been no change in the company’s policy on gearing.

Net proceeds from the sale of the notes will be used for the refinancing of existing indebtedness, investment and other general corporate purposes. The weighted average interest payable on the 12 and 15 year Notes will be 3.04% and the weighted average interest on all structural borrowings following the transaction is expected to be approximately 2.8%.

FRCL : Foreign & Colonial takes on long-term debt

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