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Impax Environmental raises EUR60 million to repay drawn debt

20th Jul 2023 10:19

(Alliance News) - Impax Environmental Markets PLC on Thursday said it successfully issued EUR60 million privately placed notes in three tranches, as part of its long-term structural debt strategy.

The London-based environmental investment trust said the first tranche of EUR20 million will mature on September 1, 2030 with a floating coupon of Euribor plus 1.35%. The second tranche of EUR30 million will mature on September 1, 2033 with a fixed coupon of 4.48%, while the final trance of EUR10 million will mature on September 1, 2035 with a fixed coupon of 4.63%.

The proceeds will be used to repay drawn debt of USD32.2 million and GBP25 million, Impax Environmental said, which were provided by Bank of Nova Scotia in London and mature on September 6.

Impax Environmental said the funding date is expected to be September 1, with interest payable semi-annually. It said it found the combination of fixed and floating rates "attractive in current market conditions" and should enhance long-term performance.

"Using structural debt with the aim of enhancing returns for shareholders is a key advantage of the investment trust structure," said Chair Glen Suarez.

"This financing provides attractive long-term debt capital to be deployed for the benefit of shareholders for many years to come and comes at a time when the board and the manager believe that portfolio valuation makes gearing desirable."

Shares in Impax Environmental were flat at 417.00 pence each in London on Thursday morning.

By Greg Rosenvinge, Alliance News reporter

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