Perpetual raises $267m for Credit Income Trust
Perpetual has raised $267 million for its Credit Income Trust following strong demand to capitalise on a pipeline of corporate loan opportunities.
The trust – listed on the ASX as PCI – said the pipeline of corporate loan and securitised asset deals will complement the relative value opportunities identified in investment grade and high yield credit and fixed income assets.
Existing unitholders and wholesale investors purchased units at $1.10 per new unit, representing a 9.1 per cent discount to the trust’s closing price on 7 November.
The investment objective of PCI is to provide investors with monthly income by investing in a pool of credit and fixed income assets, targeting a total return of RBA cash + 3.25 per cent per annum. It typically holds 50-100 assets with an unconstrained mandate, chosen by top down market screening and risk appetite from an approved list of issuers.
As of 31 October, it had 160 holdings from 94 issuers and a running yield of 6.9 per cent.
The offer was fully subscribed and raised the maximum potential raise.
Portfolio manager Greg Stock, who manages the trust with Michael Korber and Michael Murphy, said: “We are pleased to have received strong demand for the raise, which only reinforces our belief for the need for investors to have a simple and transparent way to invest in a diversified portfolio of credit and fixed income assets via a listed vehicle.
“We have proven over a number of time periods that we can provide a source of income to PCI's unitholders, in excess of the RBA cash rate and we believe this makes PCI an attractive investment proposition."
At the time of the entitlement offer being launched on 18 November, PCI said the additional capital would increase PCI’s size which would increase liquidity and benefit unitholders. It was also hopeful it would generate new interest from investors and financial advisers.
The greater scale of the vehicle would also reduce PCI’s fixed expense base on a per unit basis.
Looking ahead at investment opportunities, PCI’s management team said base rates remain elevated, total yield remains attractive relative to other asset classes, credit market conditions are stable and the Australian credit market is evolving and deepening with increasing issuer diversity.
It previously raised $93 million in August 2024.
AUTHOR
Laura Dew
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