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QuotedData’s morning briefing 8 April 2022

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In QuotedData’s morning briefing 8 April 2022:

  • HydrogenOne Capital Growth (HGEN) has announced that its placing, which was previously announced on 4 April 2022, has raised gross proceeds of £21.5 million via the issue of 21,469,999 New Ordinary Shares at a price of 100 pence per New Ordinary Share. The Placing was well supported by new and existing shareholders and was oversubscribed (above HGEN’s existing shareholder authorities granted at the time of the Company’s IPO) and a scaling back exercise has been undertaken. The Board says that it continues “to actively consider the implementation of a share issuance programme in the near term in order to fund the broader pipeline, currently in excess of £500 million”. 

  • Cordiant Global Agriculture Income (CGAI), whose proposed IPO was announced on 2 March 2022 (click here to see our coverage of the launch of the IPO) has announced that “it is pausing its IPO process at the current time”. The company says that “Given the current market backdrop and world events which are presenting challenges for many investors across existing portfolios and beyond, the Company believes that it will be beneficial to seek to IPO at a later date.” All subscriptions received via the Intermediaries Offer and Offer for Subscription, shall be returned to investors.

  • International Public Partnerships (INPP) has announced a £250m fundraising by way of a Placing, Open Offer, Offer for Subscription and Intermediaries Offer at an issue price of 159.5 pence per share. The proceeds of the capital raise will be used to pay down the cash drawn portion of INPP’s corporate debt facility, which totalled approximately £156.2m as at 6 April 2022, and to provide additional resources to pursue INPP’s investment pipeline. [QD comment: it is pleasing to see that this capital raising is open to a broad range of investors. We have previously commented that institutional only fundraisings, that are all sewn up in a day or so, do not give the smaller retail investor a fair bite at the cherry, and it is nice to see INPP structuring this fundraising in a way that addresses this problem.]

  • Volta Finance (VTA) has published its interim results for the six months ended 31 January 2022. During the period, VTA provided NAV and share price total returns of 5.6% and 7.8% respectively. VTA’s chairman, Paul Meader, says that he previously commented that financial markets had enjoyed extraordinary policy tailwinds since COVID-19 first emerged but that these were likely to veer around and become headwinds (fiscal stimulus was likely to wane and monetary policy likely to tighten) and he says that this has occurred more swiftly than he had suspected (as expectations around inflationary pressures have shifted from being “transitory” to being altogether more concerning). These effects have been amplified by the invasion of Ukraine, the consequence has been a very sharp fall in the prices of government bonds and considerable volatility in equities, with few safe-havens for investors. However, Volta’s assets are overwhelmingly floating rate in nature and have avoided much of the adverse sentiment in the fixed interest markets as interest rate expectations have accelerated. At the same time, the “CLO arbitrage” (in simple terms the difference between the interest received by a CLO from the underlying loans and the interest cost of the CLO debt) has remained intact. Volta’s significant allocation to CLO equity positions, which accounted for 61.3% of its NAV at 31 January 2022, has, therefore, proven beneficial.

We also have NextEenergy Solar’s announcement that it has commenced construction of Whitecross (a 36MW, subsidy-free utility solar plant, located in Lincolnshire).

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