RM INFRASTRUCTURE INCOME PLC

Regulatory Filings • Jul 11, 2022

National Storage Mechanism | Additional information

RNS Number : 9022R

RM Infrastructure Income PLC

11 July 2022

RM Infrastructure Income plc

(the "Company" or "RMII")

Three new investments in social infrastructure totalling £11 million

RM Infrastructure Income plc, the specialist social and environmental infrastructure secured lender, announces that it has reached financial close on three social infrastructure loans. A total of approximately £11 million has been allocated to targeted infrastructure sectors, including the Company's first ESG Sustainability linked loan.

Investment highlights

·    Social Infrastructure - Aged Care

Purpose: Construction of a 45-bed purpose-built aged care home, located in SE England.

Investment Size: Up to £6 million Loan.

Tenor: 3 years.

Coupon: Floating, linked to Bank of England base rate, with floor.

Credit Enhancement: RLS / Partial Government Guarantee.

ESG Sustainability Conditions: The loan contains a margin ratchet, which is linked to environmental building standards, and operational/governance conditions which align with the Company's ESG reporting framework.

·    Social Infrastructure - Accommodation

Purpose: Acquisition and development of a PRS/co-living scheme in Central London.

Investment Size: Up to £2 million Loan.

Tenor: 3 years.

Coupon: Floating, linked to Bank of England base rate, with floor.

Credit Enhancement: RLS / Partial Government Guarantee.  

·    Social Infrastructure - Childcare

Purpose: Acquisition of operational high performing, London-based early years care business.

Investment Size: Up to £3 million Loan.

Tenor: 5 years.

Coupon: Floating, linked to Sterling Overnight Interest Average (SONIA).

Credit Enhancement: RLS / Partial Government Guarantee.

All loans are secured via all-asset debentures, benefit from limited exposure to interest rate risk, and offer an initial weighted average cash yield of circa 10%.

Thomas Le Grix De La Salle, Co-Portfolio Manager, RM Funds commented: "These investments support under-supplied critical social infrastructure sectors. The investments' sub-sectors all benefit from strong demographic and structural tailwinds, and each loan's cash yield provides a real return when compared with reported CPI inflation."

James Robson, Chief Investment Officer, RM Funds commented: "We are delighted to have written our first sustainability linked loan for RMII, with meaningful financial incentives for the borrower to meet certain sustainability and service level objectives. These loans suit both our borrowers' needs and the Company's objectives with coupons linked to the Bank of England base rate or SONIA. In an increasingly inflationary environment, RM Funds remain focused on the maturity of the portfolio and increasing the protection against inflation whilst supporting sectors and sub-sectors that are broadly insulated from economic cycles."

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For further information, please contact:

RM Funds - Investment Manager James Robson Thomas Le Grix De La Salle	0131 603 7060
Tulchan Communications LLP - Financial PR Elizabeth Snow Oliver Norgate	0207 353 4200 RMII@tulchangroup.com

About RM Infrastructure Income PLC

RM Infrastructure Income plc aims to generate attractive and regular dividends through investment in secured debt instruments of UK Small and Medium sized Enterprises ("SMEs") and mid-market corporates including any loan, promissory notes, lease, bond, or preference share (such debt instruments, as further described in the Annual Report, being "Loans") sourced or originated by RM Funds (the "Investment Manager") with a degree of inflation protection through index-linked returns where appropriate.

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