RM Secured Direct Lending PLC Notes Additional Allocation Under UK Coronavirus Business Interruption Loan Program
The investment trust said its debt fund initially received a guarantee capacity allocation from the HM government in August 2020, which has now been fully rolled out to businesses and accounts for around 11% of the company’s net asset value. .
() said it had received an increased allocation from the British Business Bank under the Coronavirus Business Interruption Loan Scheme (CBILS).
The investment trust, which specializes in secured debt investments, said its debt fund was initially assigned a guarantee capacity from the HM government in August 2020, which has now been fully rolled out to companies in the areas of intervention of RM Funds, representing around 11% of the company. net asset value (NAV) as of December 31, 2020.
Offered by the accredited lenders of the British Business Bank, the CBILS is designed to support the financing of British small businesses (SMEs) during the coronavirus (COVID-19) outbreak. The program allows lenders to provide loans of up to £ 5million while the government offers a business interruption payment option whereby the first 12 months of interest on the loan and some upfront fees are paid by the government. All CBILS loans are also backed by a UK government guarantee protecting 80% of principal and 100% of interest for the first year.
RM said it also plans to continue to roll out into its existing high-quality pipeline following the allocation increase, adding that to date it has funded four loans through CBILS, including one. two-tranche senior secured loan to support the development of a high-quality 72-bed complex. specially designed retirement home as well as another guaranteed loan for the elderly to a company specializing in providing energy efficiency improvement measures.
“We are delighted to have benefited from an increase in our allocation under the CBILS scheme. Not only does this allow us to support UK businesses impacted by Covid-19 but who meet our strict investment criteria, the state guarantee acts as a strong credit enhancement for all new eligible loans that can be facilitated. as part of the program, ”said James Robson, RM’s chief investment officer, in a statement.
The company’s shares were flat at 88.5 pence in the first trades on Monday.