Schroder BSC targets £26m fundraise – Schroder BSC Social Impact Trust announced on 28 August 2021 that it intended to consult with investors regarding the potential for an equity issue. The board is now announcing that it is proposing to issue up to 25m new ordinary shares by way of a placing at 105p per share. The new shares will be offered on a non-pre-emptive basis (existing shareholders are not given the first chance to acquire them).
The company launched on 22 December 2020 raising £75m to invest in a portfolio of investments in areas such as high impact property, debt for social enterprise and social outcome contracts. The company’s investments now support over a hundred frontline organisations.
In the period since launch, the NAV has increased from an opening unaudited NAV of 98.32p per share to 104.3p as at 30 June 2021, reflecting a NAV total return of 6.09% over a period of approximately six months, ahead of expectations. The company has also declared an initial dividend of 0.57p.
The net proceeds from the initial public offering have been fully committed and the company is now seeking to raise additional capital.
Pipeline update
Big Society Capital Limited (the manager) has identified a pipeline of £35m-£70m in scalable investment opportunities that can be sized based on capital raised and invested in further as the company grows. The pipeline opportunities exceed the target fundraising amount, taking into account the timing uncertainty of potential new investments. The manager expects to commit the majority of the net proceeds of the placing within the next six months.
Some of the new fund opportunities being considered include:
- Investment in a fund lending to UK charities and social enterprises who have been impacted by COVID-19, underpinned by an existing government credit guarantee scheme.
- Co-investments in secured loans that enable communities to own renewable energy assets, which predominantly benefit from the government’s Feed-in Tariff Scheme. Asset ownership allows communities to reinvest the profits to benefit local people with a focus on funding for fuel poverty, financial inclusion and climate actions.
- Investment in a fund working with local authorities in London to increase the provision of transitional accommodation for the formerly homeless.
The board reserves the right to increase the size of the placing, subject to, inter alia, investor demand and the near-term availability of attractive investment opportunities. The placing will be made to qualified investors through Winterflood Securities Limited.
The placing is expected to close at 2.00 p.m. on 17 November 2021 and the results are expected to be announced on 18 November 2021. It is expected that Admission will become effective at 8.00 a.m. on 22 November 2021 and that dealings in the shares will commence at that time.
SBSI : Schroder BSC targets £26m fundraise