Issue of Euro 20m fixed rate notes

RNS Number : 3691T

British Empire Trust PLC

11 October 2017

 

BRITISH EMPIRE TRUST PLC (the "Company")

Issue of €20m fixed rate notes

British Empire Trust plc announces that it has agreed to issue fixed rate 20 year unsecured private placement notes (the "Notes") to obtain fixed rate, long-dated Euro denominated financing at a price that the Company's Directors and Investment Managers, AVI, consider to be attractive. This is expected to enhance long-term investment performance, reflecting the view of both parties that current market conditions continue to offer significant opportunities for the Company's investment approach.

The issue will be €20 million (equivalent to approximately £17.9 million at today's exchange rate) at an interest rate of 2.93%.

The funding date is expected to be 1 November 2017 and the Notes are due to be repaid on 1 November 2037. The semi-annual interest payment dates will be 1 May and 1 November.

The Notes will be unsecured. There has been no change in the Company's formal policy on gearing, as set out on page 36 of the 2016 Annual Report. Total fixed rate borrowing, including the Notes, will increase from £71.6 million to £89.4 million following completion of this transaction and, based on the latest net asset value, debt will be some 9.6% of net assets.

Enquiries:

Asset Value Investors

Joe Bauernfreund

Tel: [phone]

Quill PR

Fiona Harris

Tel: [phone]

[e-mail] 

Andreea Caraveteanu

Tel: [phone]

[e-mail] 

11 October 2017

The information contained within this announcement may constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

LEI: 213800QUODCLWWRVI968

 

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