TIDMSMT
RNS Number : 9459Z
Scottish Mortgage Inv Tst PLC
16 January 2020
Scottish Mortgage Investment Trust PLC
Scottish Mortgage Investment Trust PLC raises further borrowings
of
GBP188 million
16 January 2020
Scottish Mortgage Investment Trust PLC announces that it has
raised a further cGBP188 million in long-term, fixed rate, senior,
unsecured private placement notes, denominated in a mixture of
Sterling and Euros. This transaction has provided the Company with
further long-term financing at very attractive rates.
These new notes are part of Scottish Mortgage's existing gearing
facilities. The Board remains committed to the strategic use of
borrowings for the Company, in the belief that gearing the
portfolio in this way will enhance returns to shareholders over the
long term. As Scottish Mortgage's assets have grown in recent
years, the Board has increased the absolute level of the borrowings
in order to maintain the relative level of gearing of the
portfolio. This is the third set of private placement notes issued
by the Company.
The new private placement agreement provides for total
additional borrowings of GBP188 million, through the issuance of
three notes: one 20-year note for GBP150 million with a fixed
coupon of 2.30%, one 25-year note for EUR 18 million with a fixed
coupon of 1.65% and a 30-year note for EUR 27 million with a fixed
coupon of 1.77%. All coupons will be payable semi annually. The
funding date for all three tranches was the 15 January 2020.
Once again, Banco Santander S.A. London acted as the placement
agent for the transaction.
Fiona McBain, Chairman of Scottish Mortgage, says:
"The Board views the capacity to issue modest amounts of debt as
one of the principal advantages of Scottish Mortgage's investment
trust structure. I am delighted to say that that the Company
continues to be able to raise private placement debt at highly
attractive long-term rates. This is reflective of the enduring
strength of Scottish Mortgage's proposition and should enhance the
long-term returns for our shareholders."
Performance
Periodic Performance to 31 December 2019 (%)
1 Year 3 Years 5 Years 10 Years
Share Price 24.8 84.1 143.1 509.4
------- -------- -------- ---------
NAV 26.8 85.3 145.1 419.3
------- -------- -------- ---------
Index* 22.3 34.4 81.2 198.2
------- -------- -------- ---------
Discrete Annual Performance (%)
01/01/15 01/01/16 01/01/17 01/01/18 01/01/19
- 31/12/15 - 31/12/16 - 31/12/17 - 31/12/18 - 31/12/19
Share Price 13.3 16.5 41.1 4.6 24.8
------------ ------------ ------------ ------------ ------------
NAV 14.8 15.3 40.6 4.0 26.8
------------ ------------ ------------ ------------ ------------
Index* 4.0 29.6 13.8 -3.4 22.3
------------ ------------ ------------ ------------ ------------
Past performance is not a guide to future returns.
Performance source: Morningstar and underlying index provider,
total return.
*FTSE All-World Index
For further information please contact:
Catharine Flood, Corporate Strategy 0131 275 2718
Director for Scottish Mortgage Investment catharine.flood@bailliegifford.com
Trust PLC
Baillie Gifford & Co Ltd
Tony Fordham, Managing Director 020 7756 7205
Banco Santander S.A. London Branch tony.fordham@santandercib.co.uk
Jon Atkins, Four Communications 020 3697 4200
BaillieGifford@fourcommunications.com
Notes to editors
Scottish Mortgage Investment Trust PLC
Scottish Mortgage offers an actively managed investment trust,
investing in a high conviction, global portfolio of companies with
the aim of maximising its total return to its shareholders over the
long term. It is jointly managed by James Anderson and Tom Slater.
Both are partners of Baillie Gifford & Co.
Scottish Mortgage was founded in 1909 initially to offer loans
to rubber growers in Malaysia. It is now the UK's largest
conventional investment trust with gross assets of over GBP8.9
billion* (as at 31 December 2019). It has a strong focus on
providing a low-cost long-term investment proposition to its
shareholders, with an ongoing charge of 0.37% for the financial
year to 31 March 2019.
* Total fair value of loans & debentures amount to GBP763.7
million as at 31 December 2019. The potential gearing of the
Company was 8.4% of shareholders' funds and the invested gearing
level was 8.2% on the same basis.
Baillie Gifford
Baillie Gifford & Co Limited is the manager of Scottish
Mortgage Investment Trust PLC. Baillie Gifford & Co currently
employs 1,285 people as at 31 December 2019 and has assets under
management and advice of GBP206 billion as at 30 September 2019. An
asset management firm founded in 1908, it is headquartered in
Edinburgh where most of its staff are based.
With any investment, capital is at risk. The value of shares can
fall as well as rise and investors may not get back the amount
invested. The trust's risk could be increased by its investment in
unlisted investments. These assets may be more difficult to buy or
sell, so changes in their prices may be greater. Due to the trust's
investments in overseas securities, changes in the rates of
exchange may also cause the value of investments to go down or up.
Scottish Mortgage also invests in emerging markets and is only
suitable for those investors prepared to accept a higher level of
risk. The trust can borrow money to make further investments
(sometimes known as 'gearing' or 'leverage'). The risk is that when
this money is repaid by the trust, the value of the investments may
not be enough to cover the borrowing and interest costs, and the
trust will make a loss. If the trust's investments fall in value,
any invested borrowings will increase the amount of this loss.
For Key Information Documents for Scottish Mortgage, please
visit our website at www.bailliegifford.com
This information has been issued and approved by Baillie Gifford
& Co Limited which is authorised and regulated by the Financial
Conduct Authority (FCA). The investment trusts managed by Baillie
Gifford & Co Liminted are listed UK companies and are not
authorised or regulated by the Financial Conduct Authority.
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END
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