TIDMRMII TIDMTTM

RNS Number : 7274S

RM Infrastructure Income PLC

18 July 2022

 
                               RM Infrastructure Income Plc 
 
                                ("RMII" or the "Company") 
 
                                LEI: 213800RBRIYICC2QC958 
 
                                     Net Asset Value 
 
  NAV 
   The Company's NAV % Total Return for the month of June was -0.02%, 
   which brings the NAV % Total Return for the quarter to +0.80%. 
   The NAV % Total Return over the last twelve months was +5.26%, 
   since January 2020 pre-COVID-19 pandemic the NAV % Total Return 
   has been +13.39% and inception to date has been 34.22%. 
   The Ordinary Share NAV as at 30(th) June 2022 was 93.68 pence 
   per share. This monthly NAV return of -1.644 pence per share 
   arose primarily from the ex-dividend effect of the 1.625 pence 
   per share ordinary dividend for the period Q1 2022, declared 
   in May 2022 and paid in June 2022. Otherwise, there was positive 
   interest income, net of expenses, of 0.616 pence per share and 
   a decrease in portfolio valuations of 0.635 pence per share. 
     Summary for June 2022 (pence 
               per share) 
    Net interest income     +0.616p 
    Change in portfolio 
     valuations             -0.635p 
    Payment of Dividend 
     (Q1 2022)              -1.625p 
    Net NAV Movement        -1.644p 
   ----------------------  -------- 
 
 
   The closing mid-market share price at the quarter-end was 90.75 
   pence which is 4.25 pence per share lower than the opening mid-market 
   share price at the start of the year and represents a total shareholder 
   return of 8.16% over the twelve months to 30(th) June 2022. 
   Market Update 
   The quarter saw continued weakness in credit spreads and an increase 
   in government bond yields. The Markit ITRX European Crossover 
   Index rose from 338 to close the quarter at 579 and since the 
   beginning of the year this index has doubled from 240 and is 
   now trading at the widest level since the brief "peak-fear" moment 
   in March 2020 and then not since the European sovereign crisis 
   of 2012. Benchmark 10-year UK government bond yields rose 62bps 
   over the period from 1.6% to 2.2%. 
   Overall, with higher government rates and wider credit spreads 
   the all-in yields are starting to look very attractive across 
   a variety of names. Furthermore, the general yield compression 
   we saw during the QE years has reversed and now we are seeing 
   healthy dispersion with risks starting to be priced more favourably 
   amongst issuers. 
   RMII has significantly outperformed benchmark loan and bond indices 
   over the first half of 2022 with a share price total return of 
   -1.06% versus -7.62% for the S&P European Leverage Loan Index 
   Total Return and -13.40% for the Markit iBoxx EUR High Yield 
   Index. 
 
                                  Total Return 
                                  YTD       ITD 
   --------------------------  -------- 
    RM Infrastructure Income 
     NAV                        +2.68%    +34.22% 
    RM Infrastructure Income 
     Share Price                -1.06%    +28.23% 
    S&P European Leveraged 
     Loan Index                 -7.62%    +8.73% 
    Makit iBoxx EUR Liquid 
     High Yield TRI             -13.40%   +0.21% 
   --------------------------  --------  -------- 
 
 
   Portfolio Activity 
   As described above, publicly observable credit spreads have been 
   very weak and during the month of June the Level 2 assets were 
   marked to the bid side of the market, using Markit pricing, and 
   after discussions with the Company's independent valuation agent 
   the Level 3 assets had a generic widening of 20bp applied. This 
   generic widening of 20bp reflects the shorter duration of the 
   portfolio combined with the covenanted higher yielding and bespoke 
   nature of the loans held. The overall portfolio yield has thus 
   increased from 8.60% to 8.73% over the month. 
   With persistently high inflation levels and likely further interest 
   rate hikes by global central banks, the Investment Manager remains 
   confident with regards to the low interest rate sensitivity of 
   the portfolio. This is largely due to the short duration nature 
   of the portfolio which is currently 1.91 years. This means that 
   loans can be repaid relatively quickly and reinvested at higher 
   yields. 
   The second quarter of 2022 was active in terms of new investments 
   and scheduled drawdowns totalling circa GBP13.5m under existing 
   committed facilities. The new investments increase the portfolio's 
   weighting towards its refreshed target sectors. Repayments and 
   divestments received throughout the quarter totalled circa GBP1.3m. 
   The transactions for the quarter are shown below. 
   Increased investments 
    *    Social Infrastructure - Aged Care, Ref 88 : 
         GBP1,287,805 drawdown under a senior secured 
         committed construction facility. 
 
 
    *    Social Infrastructure - Health & Well-being, Ref 76 : 
         GBP150,000 drawdown under a senior secured committed 
         facility. 
 
 
    *    Environmental Infrastructure - Renewable Heat 
         Incentive, Ref 52 : GBP400,000 drawdown secured 
         against Renewable Heat Incentive (RHI) cash flows. 
 
 
   New Investments 
    *    Social Infrastructure - Health & Wellbeing, Ref 94.a 
         : GBP350,000 senior secured Recovery Loan Scheme 
         (RLS) term loan facility. 
 
 
    *    Social Infrastructure - Aged Care, Ref 97 : 
         GBP6,000,000 senior secured committed term loan 
         construction facility, partly funded via the RLS 
         regime. 
 
 
    *    Social Infrastructure - Childcare, Ref 95 : 
         GBP3,000,000 Senior secured committed term loan 
         facility, partly funded via the RLS regime. 
 
 
    *    Social Infrastructure - Accommodation, Ref 93 : 
         GBP2,000,000 Junior secured RLS term loan facility. 
 
 
    *    Environmental Infrastructure - Energy Efficiency, Ref 
         96 : GBP300,000 drawdown under a senior secured 
         committed facility to a company manufacturing and 
         distributing energy efficiency products in the UK. 
 
 The Company also announces that the Monthly Report for the period 
  to 30 June 2022 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 
 Pietro Nicholls 
  Thomas Le Grix De La Salle 
 Tel: 0131 603 7060 
 
 International Fund Management - AIFM 
 Chris Hickling 
 Shaun Robert 
 Tel: 01481 737600 
 
 Tulchan Group - Financial PR 
 Elizabeth Snow 
 Oliver Norgate 
 Tel: 0207 353 4200 
 
 Sanne Fund Services (UK) Limited - Administrator and Company 
  Secretary 
 Brian Smith 
 Ciara McKillop 
 Tel: 020 3327 9720 
 
 Singer Capital Markers Advisory LLP - Financial Adviser and 
  Broker 
 James Maxwell 
 Asha Chotai 
 Tel: 020 7496 3000 
 
 Peel Hunt LLP - Financial Adviser and Broker 
 Luke Simpson 
 Liz Yong 
 Tel: 020 7418 8900 
 
 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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July 18, 2022 02:00 ET (06:00 GMT)

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