Scottish Mortgage Investment Trust has raised a further £294m in long-term, fixed rate, unsecured loan notes, at what it describes as “very attractive rates”.
As the trust's assets have grown, the board has increased the absolute level of the borrowings in order to maintain what it believes to be the appropriate level of gearing of the portfolio.
The new private placement agreement provides for total additional borrowings of $400m, through the issuance of three notes: one 30-year note for $175m with a fixed coupon of 2.99%, one 35-year note for $110m with a fixed coupon of 3.04%, and a 40-year note for $115m with a fixed coupon of 3.09%.
