Panmure Gordon has completed a £37 million fundraising of new Convertible Unsecured Loan Stock (“CULS”) for Aberdeen Asian Smaller Companies Investment Trust, run by Hugh Young. Panmure Gordon is Broker to the trust.
The new Loan Stock runs to 2025 and began trading on the London Stock Exchange on 29 May 2018, with an option to convert into ordinary stock. Aberdeen Asian Smaller Companies first issued £35 million of CULS at 3.5% in May 2012 running to 2019, taking on structural gearing for the first time. This most recent raise follows the decision to extend this earlier issue given the attractive interest rate environment. The team at Panmure Gordon achieved a lower coupon, at 2.25%, with an expiry date of May 2025 and a new and increased conversion price. Existing holders of the 2019 loan stock rolled £15.2 million into the new 2025 stock in a reinvestment scheme, and Panmure Gordon placed £18.3 million of 2025 CULS with institutional investors and private client stockbrokers at the issue price of 100p per £1 nominal, with £3.5 million being applied for under the open offer.
Robert Naylor, Head of Corporate Finance - Investment Funds at Panmure Gordon, said: “In an environment where investors have become especially discerning, our work for Aberdeen Asian Smaller Companies Investment Trust highlights our successful fundraising capabilities. This issue showcases an approach that can be replicated with other investment trusts wanting to raise money through issuing CULS, which are attractive to investors and cost efficient for the trust”.