REG - RM Infrastructure RM SecDirect - RMDC - Net Asset Value(s)

RM Infrastructure IncomeAnnouncement

16/10/2023 07:00

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RNS Number : 1471Q  RM Infrastructure Income PLC  16 October 2023

 RM Infrastructure Income Plc

 ("RMII" or the "Company")

 LEI: 213800RBRIYICC2QC958

 Net Asset Value

 NAV & Share Price Performance

The Company's NAV % Total Return for the month of September was 0.39%, which
 brings the NAV % Total Return for the quarter to 0.52%.

 The NAV % Total Return over the last twelve months was 4.74% and inception to
 date 41.59%.

 The Ordinary Share NAV as at 30(th) September 2023 was 90.53 pence per share.
 This monthly NAV return of -1.268 pence per share arose primarily from the
 ex-dividend effect of the 1.625 pence per share ordinary dividend for the
 period Q3 2023, declared and paid in September 2023. Otherwise, there was
 positive interest income, net of expenses, of 0.426 pence per share and a
 decrease in portfolio valuations of 0.07 pence per share.

Summary for September 2023 (pence per share)
 Net interest income             +0.426p
 Change in portfolio valuations  -0.069p
 Payment of Dividend (Q3 2023)   -1.625p
 Net NAV Movement                -1.268p

 

Shareholder Consultation Update

On 6 September 2023, the Company announced that following an extensive
 consultation with its advisers and shareholders regarding the future strategy
 of the Company, and although shareholders have been overwhelmingly supportive
 of the Company's management and performance, the Board has decided to put
 forward proposals for a managed wind down of the Company.

 The Board intends to publish a shareholder circular by the end of October 2023
 to convene a general meeting at which it will seek approval from shareholders
 for the managed wind down and any other related matters required to facilitate
 an orderly realisation.

 Market Update

 Fixed income products, especially sovereign bonds, have dominated the news
 flow during this third quarter of 2023. The higher for longer rhetoric from
 Central Banks from both sides of the Atlantic, has translated into a
 steepening of the UK yield curve at the tail end as well as a tightening of
 the yield curve inversion at the front of the curve. Although on track to
 continue its downward trajectory, UK inflation remains high with the labour
 market showing signs of resiliency. We remain cautious regarding duration risk
 and have positioned the portfolio accordingly.

 Credit spreads, as measured by the Markit ITRX European Crossover Index, saw a
 widening of circa 25bps during September, commencing at circa 400bps and
 ending the month at circa 427bps. Since the month end, it reached a peak of
 circa 461bps after gradually reverting back to circa 430bps. This is in line
 with our previous comments whereby RM believes that spreads are / were
 probably at their tightest levels and decompression would soon materialise. As
 the monetary tightening effects continue to feed through the financial system
 and as credit conditions continue to deteriorate, it is RM's view that credit
 spreads will continue their decompression journey, in line with what we have
 seen in the sovereign yield space.

                    Total Return (%)
                     1yr     3yr      5yr
 RM Infrastructure Income NAV           4.74%   21.58%   31.78%
 RM Infrastructure Income Share Price   -8.73%  10.61%   1.36%
 S&P European Leveraged Loan Index      6.08%   1.75%    -2.69%
 Ishares Core Corp Bond UCITS ETF GBP   7.98%   -18.46%  -5.34%

 

Portfolio Update

The Investment Manager remains confident with regards to the low interest rate
 sensitivity of the portfolio. This is largely driven by its short average
 duration, which is currently 1.53 years. The weighted average yield of the
 portfolio has increased to 10.38% at the end of the reporting period, a
 widening in yield of 26bps versus June 2023 or 151bps versus same period last
 year.

 We outline below the key investment activities for Q3 2023:

 New investments

 ·      Childcare & Education, Ref 98: c.£0.8m

 Material Repayments:

 ·      Asset Finance, Ref 60: £2m

 ·      Hotel & Leisure, Ref 86: £5m

 Post period end, the Company successfully completed the prepayment at par of
 investment loan #82 and #83, receiving c.£7.8m.

 Given the outcome of the Board's strategic review and the resulting proposed
 managed wind down recommendation, which will be put to a Shareholders' vote in
 November 2023, there will be no new investments (save for drawdowns against
 committed facilities) unless the Board considers that doing so will maximise
 returns to shareholders in the timeframe in which the Company will otherwise
 be dealing with the managed wind down.

 As such, available free cash is currently being utilised in repayment of the
 outstanding leverage facilities. During the reporting period, the RCF was
 fully repaid with a £2.2m repayment and the Term Loan saw a £1m repayment.
 Post period end, a further £5.8m was repaid on the Term Loan with a current
 outstanding balance of c.£5.2m. We anticipate that by end of Q4 2023, the TLB
 will have been repaid in full.

 The Company also announces that the Monthly Report for the period to 30
 September 2023 is now available to be viewed on the Company website:

 https://rm-funds.co.uk/rm-infrastructure-income/rm-funds-investor-monthly-fact-sheets-2/

 END

 For further information, please contact:
 RM Capital Markets Limited - Investment Manager
 James Robson
 Thomas Le Grix De La Salle
 Tel: 0131 603 7060

 FundRock Management Company (Guernsey) Limited - AIFM
 Chris Hickling
 Dave Taylor
 Tel: 01481 737600

 Apex Listed Companies Services (UK) Ltd - Administrator and Company Secretary
 Ciara McKillop

 Tel: 020 3327 9720

 Singer Capital Markers Advisory LLP - Financial Adviser and Broker
 James Maxwell
 Asha Chotai
 Tel: 020 7496 3000

 About RM Infrastructure Income

 RM Infrastructure Income Plc ("RMII" or the "Company") is a closed-ended
 investment trust established to invest in a portfolio of secured debt
 instruments.

 The Company aims to generate attractive and regular dividends through loans
 sourced or originated by the Investment Manager with a degree of inflation
 protection through index-linked returns where appropriate. Loans in which the
 Company invests are predominantly secured against assets such as real estate
 or plant and machinery and/or income streams such as account receivables.

 For more information, please see
 https://rm-funds.co.uk/rm-infrastructure-income/

 

Shareholder Consultation Update

On 6 September 2023, the Company announced that following an extensive
consultation with its advisers and shareholders regarding the future strategy
of the Company, and although shareholders have been overwhelmingly supportive
of the Company's management and performance, the Board has decided to put
forward proposals for a managed wind down of the Company.

The Board intends to publish a shareholder circular by the end of October 2023
to convene a general meeting at which it will seek approval from shareholders
for the managed wind down and any other related matters required to facilitate
an orderly realisation.

 

Market Update

Fixed income products, especially sovereign bonds, have dominated the news
flow during this third quarter of 2023. The higher for longer rhetoric from
Central Banks from both sides of the Atlantic, has translated into a
steepening of the UK yield curve at the tail end as well as a tightening of
the yield curve inversion at the front of the curve. Although on track to
continue its downward trajectory, UK inflation remains high with the labour
market showing signs of resiliency. We remain cautious regarding duration risk
and have positioned the portfolio accordingly.

Credit spreads, as measured by the Markit ITRX European Crossover Index, saw a
widening of circa 25bps during September, commencing at circa 400bps and
ending the month at circa 427bps. Since the month end, it reached a peak of
circa 461bps after gradually reverting back to circa 430bps. This is in line
with our previous comments whereby RM believes that spreads are / were
probably at their tightest levels and decompression would soon materialise. As
the monetary tightening effects continue to feed through the financial system
and as credit conditions continue to deteriorate, it is RM's view that credit
spreads will continue their decompression journey, in line with what we have
seen in the sovereign yield space.

 

                                        Total Return (%)
                                        1yr     3yr      5yr
 RM Infrastructure Income NAV           4.74%   21.58%   31.78%
 RM Infrastructure Income Share Price   -8.73%  10.61%   1.36%
 S&P European Leveraged Loan Index      6.08%   1.75%    -2.69%
 Ishares Core Corp Bond UCITS ETF GBP   7.98%   -18.46%  -5.34%

 

Portfolio Update

The Investment Manager remains confident with regards to the low interest rate
sensitivity of the portfolio. This is largely driven by its short average
duration, which is currently 1.53 years. The weighted average yield of the
portfolio has increased to 10.38% at the end of the reporting period, a
widening in yield of 26bps versus June 2023 or 151bps versus same period last
year.

We outline below the key investment activities for Q3 2023:

New investments

·      Childcare & Education, Ref 98: c.£0.8m

 

Material Repayments:

·      Asset Finance, Ref 60: £2m

·      Hotel & Leisure, Ref 86: £5m

 

Post period end, the Company successfully completed the prepayment at par of
investment loan #82 and #83, receiving c.£7.8m.

Given the outcome of the Board's strategic review and the resulting proposed
managed wind down recommendation, which will be put to a Shareholders' vote in
November 2023, there will be no new investments (save for drawdowns against
committed facilities) unless the Board considers that doing so will maximise
returns to shareholders in the timeframe in which the Company will otherwise
be dealing with the managed wind down.

As such, available free cash is currently being utilised in repayment of the
outstanding leverage facilities. During the reporting period, the RCF was
fully repaid with a £2.2m repayment and the Term Loan saw a £1m repayment.
Post period end, a further £5.8m was repaid on the Term Loan with a current
outstanding balance of c.£5.2m. We anticipate that by end of Q4 2023, the TLB
will have been repaid in full.

 

 

The Company also announces that the Monthly Report for the period to 30
September 2023 is now available to be viewed on the Company website:

 

https://rm-funds.co.uk/rm-infrastructure-income/rm-funds-investor-monthly-fact-sheets-2/

 

 

END

 

 

For further information, please contact:

RM Capital Markets Limited - Investment Manager

James Robson

Thomas Le Grix De La Salle

Tel: 0131 603 7060

FundRock Management Company (Guernsey) Limited - AIFM

Chris Hickling

Dave Taylor

Tel: 01481 737600

Apex Listed Companies Services (UK) Ltd - Administrator and Company Secretary

Ciara McKillop

Tel: 020 3327 9720

Singer Capital Markers Advisory LLP - Financial Adviser and Broker

James Maxwell

Asha Chotai

Tel: 020 7496 3000

About RM Infrastructure Income

 

RM Infrastructure Income Plc ("RMII" or the "Company") is a closed-ended
investment trust established to invest in a portfolio of secured debt
instruments.

The Company aims to generate attractive and regular dividends through loans
sourced or originated by the Investment Manager with a degree of inflation
protection through index-linked returns where appropriate. Loans in which the
Company invests are predominantly secured against assets such as real estate
or plant and machinery and/or income streams such as account receivables.

For more information, please see

https://rm-funds.co.uk/rm-infrastructure-income/

 

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