REG - AVI Global Trust PLC - Planned Issue of Japanese Yen Fixed Rate Debt

AVI Global TrustAnnouncement

22/06/2022 16:00

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RNS Number : 8520P  AVI Global Trust PLC  22 June 2022

AVI GLOBAL TRUST PLC

 

Legal Entity Identifier (LEI): 213800QUODCLWWRVI968

 

22 June 2022

 

PLANNED ISSUE OF JAPANESE YEN FIXED RATE DEBT

 

AVI Global Trust plc (the Company) has today entered into a preliminary
agreement to issue Japanese Yen (JPY) 8bn fixed rate unsecured debt, for a
term of ten years. Subject to final documentation, the annual interest rate on
the debt will be 1.38%. The debt will be denominated in JPY and is equivalent
to approximately GB£48million at current exchange rates.

 

The Company currently has in issue the following fixed rate debt:

GB£30m 4.184% Series A Sterling Unsecured Loan Notes, due 15 January 2036

EUR30m 3.249% Series B Euro Unsecured Loan Notes, due 15 January 2036

EUR20m 2.93% Series B Euro Unsecured Loan Notes, due 1 November 2037

 

In addition, the Company has a JPY12bn multi-currency revolving credit
facility. There are no drawings under this facility at present. The Company is
currently ungeared on a net basis (96% invested) and, following the issue of
this new JPY fixed rate debt, will have available liquidity of £234m

 

Assuming that the debt issue proceeds as planned, the Company's weighted
average interest on its fixed rate borrowings will be reduced to 2.70%,
compared with 3.56% currently.

 

The Board expects to announce the completion of the necessary documentation
within three weeks of the date of this announcement.

 

Commenting on the new financing, AVI Global Trust Chairman, Susan Noble, said:

 

"The Company's Board has taken the decision to put in place fixed rate
borrowings in Japanese Yen at what it believes may prove to be an attractive
rate of interest. Further, in light of the Company's substantial investments
in Japanese companies, borrowing in Japanese Yen provides a natural hedge
against exchange rate fluctuations."

 

 

Enquiries:        Asset Value Investors Ltd

                        020 7659 4800

 

 

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