(Alliance News) - Schroder BSC Social Impact Trust PLC on Monday announced its intention to launch an initial public offering on the main market of the London Stock Exchange.
The company is targeting an issue of up to 100 million ordinary shares at 100 pence per share, seeking to raise up to GBP100 million by means of a placing, offer for subscription, intermediaries offer and issue of consideration shares.
The expected admission date is December 22.
In addition, a placing programme will allow the company to issue a further 100 million shares, being ordinary shares or C shares, in the 12 months following initial admission.
"The company's investment objective is to be the first London listed investment company to deliver measurable positive social impact as well as long-term capital growth and income, through investing in a diversified portfolio of private market impact funds, co-investments alongside impact investors and direct investments in order to gain exposure to private market social impact investments," the company said.
"Social impact", Schroders said, is the "improvement of the life outcomes of beneficiaries in a specific target group or groups".
The company has appointed Schroder Unit Trusts Ltd as its alternative fund manager. The fund manager is part of FTSE 100-listed Schroders PLC. The company and Schroders have appointed Big Society Capital Ltd as delegated portfolio manager with responsibility for the investment of the company's assets.
"Big Society Capital is one of the UK's leading social impact investors, with a track-record in delivering sustainable financial returns and positive impact on people's lives in the UK," Schroders said.
It continued: "The partnership of Schroders and BSC, leveraging their respective experience, should provide the company and its shareholders with expert impact investment knowledge, and the use of the investment trust structure will allow the product to provide a diversified and liquid exposure to private market impact investments in the UK."
The company aims to provide a net asset value total return of consumer price index plus 2% per annum. The company will pay out its income as required by applicable law but does not have any distribution targets, and is planning shareholder distributions on an annual basis.
"Whilst the company's income is expected to vary over time depending on portfolio construction, to the extent an annual dividend is declared by the board, it is anticipated to represent in the region of a 1% to 2% yield on net asset value, once the portfolio is fully invested," the company added.
The company has agreed to acquire from Big Society Capital seven assets which have an aggregate valuation of about GBP40 million on an invested basis. Big Society Capital, who will be receiving, as consideration, shares of the company and cash such that BSC will become a significant shareholder on admission.
As a result of receiving the consideration shares Big Society Capital is expected to hold 25% of the voting share capital of the company.
Schroders will hold a 17.5% interest in the firm on admission.
Chair Susannah Nicklin said: "I am delighted that we are able to bring this social impact trust to the market at a time when the UK is facing some significant headwinds, particularly on social issues. This trust brings together the powerhouse of Schroders, a leading global asset manager, working alongside Big Society Capital, one of the UK's leading impact investors."
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Schroders (SDR)