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RM Infrastructure Income

11/07/2022 07:00

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RNS Number : 9022R  RM Infrastructure Income PLC  11 July 2022

RM Infrastructure Income plc

(the "Company" or "RMII")

Three new investments in social infrastructure totalling £11 million

 

RM Infrastructure Income plc, the specialist social and environmental
infrastructure secured lender, announces that it has reached financial close
on three social infrastructure loans. A total of approximately £11 million
has been allocated to targeted infrastructure sectors, including the Company's
first ESG Sustainability linked loan.

Investment highlights

·    Social Infrastructure - Aged Care

Purpose: Construction of a 45-bed purpose-built aged care home, located in SE
England.

Investment Size: Up to £6 million Loan.

Tenor: 3 years.

Coupon: Floating, linked to Bank of England base rate, with floor.

Credit Enhancement: RLS / Partial Government Guarantee.

ESG Sustainability Conditions: The loan contains a margin ratchet, which is
linked to environmental building standards, and operational/governance
conditions which align with the Company's ESG reporting framework.

 

·    Social Infrastructure - Accommodation

Purpose: Acquisition and development of a PRS/co-living scheme in Central
London.

Investment Size: Up to £2 million Loan.

Tenor: 3 years.

Coupon: Floating, linked to Bank of England base rate, with floor.

Credit Enhancement: RLS / Partial Government Guarantee.

 

·    Social Infrastructure - Childcare

Purpose: Acquisition of operational high performing, London-based early years
care business.

Investment Size: Up to £3 million Loan.

Tenor: 5 years.

Coupon: Floating, linked to Sterling Overnight Interest Average (SONIA).

Credit Enhancement: RLS / Partial Government Guarantee.

 

All loans are secured via all-asset debentures, benefit from limited exposure
to interest rate risk, and offer an initial weighted average cash yield of
circa 10%.

Thomas Le Grix De La Salle, Co-Portfolio Manager, RM Funds commented: "These
investments support under-supplied critical social infrastructure sectors. The
investments' sub-sectors all benefit from strong demographic and structural
tailwinds, and each loan's cash yield provides a real return when compared
with reported CPI inflation."

James Robson, Chief Investment Officer, RM Funds commented: "We are delighted
to have written our first sustainability linked loan for RMII, with meaningful
financial incentives for the borrower to meet certain sustainability and
service level objectives. These loans suit both our borrowers' needs and the
Company's objectives with coupons linked to the Bank of England base rate or
SONIA. In an increasingly inflationary environment, RM Funds remain focused on
the maturity of the portfolio and increasing the protection against inflation
whilst supporting sectors and sub-sectors that are broadly insulated from
economic cycles."

END

 

For further information, please contact:

 

 RM Funds - Investment Manager              0131 603 7060

 James Robson

 Thomas Le Grix De La Salle

 Tulchan Communications LLP - Financial PR  0207 353 4200

 Elizabeth Snow                             RMII@tulchangroup.com

 Oliver Norgate

About RM Infrastructure Income PLC

RM Infrastructure Income plc aims to generate attractive and regular dividends
through investment in secured debt instruments of UK Small and Medium sized
Enterprises ("SMEs") and mid-market corporates including any loan, promissory
notes, lease, bond, or preference share (such debt instruments, as further
described in the Annual Report, being "Loans") sourced or originated by RM
Funds (the "Investment Manager") with a degree of inflation protection through
index-linked returns where appropriate.

 

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