Perpetual Credit Income Trust initiates institutional capital raise

Perpetual Limited’s Perpetual Credit Income Trust has initiated a capital raising looking to pursue corporate loan and securitised asset deals.

The company announced to the Australian Securities Exchange (ASX) that it had initiated a placement to wholesale investors at an issue price of $1.10 per unit.

The ASX announcement said the placement, which is not underwritten, seeks to raise up to $66.2 million.

The portfolio manager, Michael Korber said the Perpetual Credit Income Trust was developed five years’ ago as the only ASX listed investment trust that invests across the spectrum of credit and fixed income assets.

“We designed it to be the bedrock of a unit-holder’s defensive portfolio, as it offers a combination of monthly income, liquidity and low capital volatility,” he said.

“Geopolitical headwinds, prevailing inflationary pressures, and a higher-for-longer view on rates continue to place pressure on markets – and we think that isn’t likely to immediately change. The Trust has a particular focus on well diversified floating rate Australian corporate credit which we think can provide protection against these conditions,” Korber said.

“We are seeing numerous opportunities where additional capital can be deployed, including an attractive pipeline of corporate loan and securitised asset deals, which will complement the relative value opportunities identified in investment grade and high yield credit and fixed income assets”

The company said that the Trust’s portfolio had delivered a 10.2% return over the 12 months to 31 May, this year, above its target return of the RBA cash rate plus 3.25% net of fees.