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Schroder's SVIIT issues £40m convertible bond to raise extra investment cash

Schroder Ventures International Investment Trust (SVIIT) has issued £40m of subordinated convertible bonds and increased its credit facility with the bank in order to free up cash for current investment opportunities.

The bonds have an annual coupon of 4.5 per cent and are convertible into fully paid ordinary shares of SVIIT at a conversion price of 480p.

‘SVIIT is one of the few investment companies that has been able to access the capital markets this year and we are delighted with the result of this fundraising,' said Nick Ferguson, chief executive of SVIIT.

‘We believe that the current investment environment for the market is attractive, particularly in Europe. These bonds will enable SVIIT to make commitments to new private equity funds, which we believe have the potential to provide for future net asset growth and superior returns for SVIIT and its shareholders in years to come.'

This is not the first time SVIIT has issued bonds in order to raise extra investment funds. In November 2001 the firm also issued a £40m convertible bond in order to expand its capacity to invest.

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