16 Apr 2021 07:00
RM Secured Direct Lending Plc and RM ZDP PLC | ||||||||||
("RMDL" or the "Company") | ||||||||||
LEI: 213800RBRIYICC2QC958 | ||||||||||
Net Asset Value | ||||||||||
RMDL announces that its unaudited net asset value per ordinary share as at 31 March 2021, on a cum income basis, was 93.49 pence (28 February 2021: 94.84 pence). | ||||||||||
RM ZDP PLC announces that the unaudited accrued capital entitlement per ZDP share as at 31 March 2021 was 110.79 pence (28 February 2021: 110.47 pence).
NAV The Company's NAV % Total Return for the month was +0.28%, which brings the NAV % Total Return for the quarter to 1.31%. The Ordinary Share NAV as at 31st March 2021 was 93.49 pence per share. This monthly NAV return of (1.355) pence per share arose primarily from the ex-dividend effect of the 1.625 pence per share total ordinary dividend for the period Q4 2020, declared in February and paid in March 2021. Otherwise, there was positive net interest income net of expenses of 0.45 pence per share and a decrease in portfolio valuations and currency hedging costs of 0.18 pence per share.
Market Update Global stock markets performed well in Q1. This can be largely attributed to the continued vaccine rollout across developed nations and a large $1.9trillion US stimulus package alongside an additional $2 trillion infrastructure spending promise announced by President Biden. The story of the quarter for fixed income investors was the rise seen in global government bond yields as the reflationary story spread. UK 10-year yields rose approximately 60bps; equating to a price movement of about 5% which should be seen in the context that UK 10- year yields started the year at circa 20bps. For the third consecutive quarter, credit products have benefitted from continued positive market momentum - for this quarterly period the total return on the Markit IBOX EUR Liquid High Yield Index was +1.41% and the S&P European Leveraged Loan index was 2.07%. Company Activity It was announced in the annual results released on 29th March 2021 that all new investment activity going forwards will see allocations to Social and Environmental Infrastructure with a focus on delivering against six specific UN Sustainable Development goal "SDG" outcomes.
The Investment Manager believes that the Company is uniquely positioned given the direct borrower relationships to allocate shareholders capital in an impactful way with a framework that will allow clear Impact reporting back to investors. This framework and Impact Score has been designed in conjunction with The Good Economy, a leading social advisory firm acting as the company's third-party impact and ESG assurance provider, and draws upon many internationally recognised frameworks. The framework will be available on the Company website and the Investment Manager would be delighted to run any investors through the impact scoring process. At the end of the quarter, approximately 30% of the portfolio was invested within infrastructure investments and we expect capital committed to Social & Environmental Infrastructure loans to increase over Q2. During the quarter a 1.625 pence per share dividend in respect of Q4 2020 was announced and paid which was the final payment to meet the 6.5 pence per share dividend target for FY 2020. The Company continued to purchase shares in the market with an additional 419,500 ordinary shares acquired at an average price of 87.32 pence, bringing the total number of ordinary shares held in treasury to 4,279,799. Both the Board and the Investment Manager remain focused on reducing the discount to -6% or lower. Post period-end RM ZDP came to the end of its three-year life on 6th April with a final capital entitlement payable of approximately £12.1 million (110.91p per ZDP share), it was announced that replacement funding for the ZDPs has been agreed through a new £12 million loan facility with Oaknorth Bank which at the time of closing was neutral in terms of the Company's existing gross borrowings (9.90% on a net basis after taking account of cash balances). This remains significantly within the Company maximum borrowing limits of 20% of net asset value at the time of drawdown.
| ||||||||||
The Company also announces that the Monthly Report for the period to 31 March 2021 is now available to be viewed on the Company website:
| ||||||||||
https://rmdl.co.uk/investor-centre/monthly-factsheets/ | ||||||||||
END | ||||||||||
For further information, please contact: | ||||||||||
RM Capital Markets Limited - Investment Manager | ||||||||||
James Robson | ||||||||||
Pietro Nicholls | ||||||||||
Tel: 0131 603 7060 | ||||||||||
International Fund Management - AIFM | ||||||||||
Chris Hickling | ||||||||||
Shaun Robert | ||||||||||
Tel: 01481 737600 | ||||||||||
Tulchan Group - Financial PR | ||||||||||
James Macey White | ||||||||||
Elizabeth Snow | ||||||||||
Tel: 0207 353 4200 | ||||||||||
PraxisIFM Fund Services (UK) Limited - Administrator and Company Secretary | ||||||||||
Brian Smith | ||||||||||
Ciara McKillop | ||||||||||
Tel: 020 4513 9260 | ||||||||||
Nplus1 Singer Advisory LLP - Financial Adviser and Broker | ||||||||||
James Maxwell | ||||||||||
Carlo Spingardi | ||||||||||
Tel: 020 7496 3000 | ||||||||||
Peel Hunt LLP - Financial Adviser and Broker | ||||||||||
Luke Simpson | ||||||||||
Liz Yong | ||||||||||
Tel: 020 7418 8900 | ||||||||||
About RM Secured Direct Lending | ||||||||||
RM Secured Direct Lending Plc ("RMDL" 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://rmdl.co.uk/investor-centre/monthly-factsheets/ | ||||||||||