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Scottish Mortgage private placement raises £188m

Scottish Mortgage - SMT

Scottish Mortgage (SMT) has raised further borrowings of £188m in long-term, fixed rate, senior, unsecured private placement notes, denominated in a mixture of Sterling and Euros. SMT says the transaction has provided it with further long-term financing at very attractive rates.

The new notes are part of SMT’s existing gearing facilities and represent the third set of private placement notes issued by the company.

The new private placement agreement provides for total additional borrowings of £188m, through the issuance of three notes: one 20-year note for £150m with a fixed coupon of 2.30%, one 25-year note for EUR 18m with a fixed coupon of 1.65% and a 30-year note for EUR 27m with a fixed coupon of 1.77%. All coupons will be payable semi annually. The funding date for all three tranches was the 15 January 2020.

Fiona McBain, SMT’s chair, said: “The board views the capacity to issue modest amounts of debt as one of the principal advantages of SMT’s investment trust structure.  I am delighted to say that that the company continues to be able to raise private placement debt at highly attractive long-term rates.”

SMT: Scottish Mortgage private placement raises £188m

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