Investment Update

RNS Number : 3618M

Schroder BSC Social Impact Trust

21 January 2021

 

21 January 2021

LEI: 549300PG5MF2NY4ZRM86

Schroder BSC Social Impact Trust plc

Investment Update

The Board of Schroder BSC Social Impact Trust plc (the "Company") is pleased to announce that since the successful launch of the Company on 22 December 2020, the Company has completed the acquisition of the Initial Portfolio as set out in the Prospectus published by the Company on 23 November 2020 (the "Prospectus") and also made a £2.5m investment in a Triodos Bank UK bond issue - a Debt for Social Enterprise direct investment.

After the acquisition of the Initial Portfolio and the investment in the Triodos Bank UK Bond issue, the Company had committed over 80% and invested over 55% of the net proceeds of the initial public offering ("IPO").

The Company will continue investing in a diversified portfolio of private market impact funds across the asset classes of high impact property, debt for social enterprises and social outcomes contracts, making co-investments alongside impact investors and direct investments in order to tackle social issues throughout the UK.

Initial Portfolio

The Company acquired on the 22 December 2020 the Initial Portfolio comprising seven Investments pursuant to the Acquisition Agreement. The Initial Portfolio has an invested valuation of £39.2m plus undrawn commitments of £19.9m. The full details of the Initial Portfolio acquired by the Company are set out in the table below.

Investment	Valuation* (£m)	Undrawn Commitments (£m)	Exposure** (£m)
UK Affordable Housing Fund	4.1	5.8	9.9
Resonance Real Lettings Property Fund	5.8	0.0	5.8
Social and Sustainable Housing LP	1.0	3.9	4.9
Charity Bank Co-Investment Facility	3.6	1.6	5.1
Rathbones Charity Bond Portfolio	15.1	0.0	15.1
Bridges Evergreen Holdings	7.2	3.2	10.4
Bridges Social Outcomes Fund II LP***	2.4	5.5	8.0
Total	39.2	19.9	59.1

*	Valuation as at 23 November 2020, adjusted for capital contributions, capital distributions and accrued income to 22 December, being the date of acquisition.
**	Exposure is the valuation plus undrawn commitments.
***	In accordance with the terms of the Acquisition Agreement, the Company's investment in Bridges Social Outcomes Fund II LP was scaled down reflecting the size of the Issue.

Further details of the Investments in the Initial Portfolio can be found in the Prospectus.

Triodos Bank UK 2020 Bond Issue

The Company has invested £2.5m in the inaugural private bond issue by Triodos Bank UK Ltd ("Triodos Bank") on 23 December 2020. The 10-year bond is callable by Triodos Bank at year five. The bond pays a fixed 4% coupon, which will reset to Base+3.9% at year five if the bond has not been called.

Triodos Bank is a leading lender to sustainability and social impact focused organisations. This includes social housing, healthcare, education, renewable energy, arts & culture, and community projects. The bond qualifies as Tier 2 regulatory capital to support Triodos Bank's ambition to grow lending in the UK in the coming years, whilst maintaining UK regulatory capital requirements. It will enable Triodos Bank to continue to grow its loan book and contribute to the resilience and growth of charities and social enterprises.

A recent example of Triodos Bank's lending includes Middlesbrough-based charity MAIN, which supports people with a range of disabilities, including autism and cerebral palsy. Triodos Bank's loan enabled MAIN to purchase a new site, which will double its existing space and increase its impact by supporting over 700 visitors per week.

Another example is Langham Court, a specialist care home offering pioneering dementia care in Hindhead, Surrey. Lending from Triodos supported the refurbishment and further development of Langham Court, including building new communal areas and expanding the home's capacity from 29 to 40 rooms.

Commenting on the investment, Jeremy Rogers, CIO of Big Society Capital, said:

"We are pleased to be announcing our first investment shortly after our December launch. Our investment in Triodos is in line with our stated objectives of tackling social challenges through supporting high impact organisations across the UK, while providing high quality risk adjusted returns to shareholders."

Terms used in this announcement shall, unless the context otherwise requires, bear the meanings given to them in the Prospectus.

For further information, please contact:

Schroders
John Spedding Estelle Bibby (Press)	0207 658 3206 0207 658 3431
Big Society Capital
Georgette Harrison, Senior Communications Director James Westhead, Head of Engagement	[e-mail] [e-mail]
Winterflood Securities Limited	020 3100 0000
Neil Langford Chris Mills

About Schroder BSC Social Impact Trust plc

The Company was launched in December 2020, with the objective to enable access to high social impact investment opportunities in private markets - tackling social challenges across the UK. The Company will build a diversified portfolio across asset classes, targeting sustainable returns, demonstrable social impact, and low correlation to traditional public markets.

Further information about the Company can be found on its website at  www.schroders.com/SBSI

 

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