Dunedin Income Growth Inv Tst PLC
27 March 2001
27 March 2001
DUNEDIN INCOME GROWTH INVESTMENT TRUST PLC (DIGIT) TAKE ADVANTAGE OF LONG TERM
ATTRACTIONS THROUGH A LOAN
FACILITY OF £40 MILLION
The board of DIGIT announces that it is has increased the gearing of the
company through a loan facility of up to £40 million to take advantage of
current low UK interest rates and the long term attractions of the UK
stockmarket. DIGIT currently has debenture stocks of £70 million and the
additional borrowing will provide DIGIT with maximum gearing of up to £110
million.
The £40 million loan facility is available on a 364 day rate and is renewable
on a yearly basis. Approximately one third of the facility was invested in the
market on 26 March 2001 and the remainder will be invested in UK equities as
opportunities arise.
DIGIT's accounting policy for the interest costs of borrowings allocate these
expenses on the basis of 70% to capital and 30% to revenue. The proportion of
the interest cost on the new loan facility allocated to revenue will be offset
by income from investments and, as a result, the additional borrowings should
have no impact on DIGIT's ability to continue to grow its income.
Ends
For further information, please contact
Ewan Brown 0131 226 7011
Chairman, Dunedin Income Growth Investment Trust PLC
Mike Balfour, 0131 313 1000
Chief Investment Officer, Edinburgh Fund Managers plc
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