Bank Facilities & Accounting
Utilico Emerging Markets Limited
19 March 2007
Utilico Emerging Markets Limited
Bank Facilities and Accounting
Bank Facilities
UEM has entered into new bank facilities amounting to £60.0m with Bank of
Scotland Corporate. This is a multi-currency facility secured on the assets of
UEM and comprises three tranches, A, B and C.
Tranche A, B and C are each for £20.0m and mature in 12 months, 36 months and 60
months respectively and the rate of interest on each tranche is libor plus
1.00%, 1.25% and 1.50% respectively.
The initial drawings under the facility will be £20.0m from tranche A and £15.0m
from tranche B. The proceeds will be used to repay the existing Royal Bank of
Scotland facility of £25.0m and to provide funds for investment into the market.
The board and management of UEM look forward to a long-term and strategic
working relationship with Bank of Scotland Corporate.
Accounting Treatment
The board of UEM has considered the impact of the increased leverage and costs
of the facility on the revenue account. To better align the costs associated
with the increased borrowings and the nature of UEM's objective to achieve
long-term capital appreciation, the board has determined to allocate the
management fee and the finance costs; 70% to capital and 30% to revenue.
This will enable the company to sustain dividend payments which better reflect
the revenue nature of the portfolio.
This policy will be adopted for the financial year beginning 1 April 2007 to 31
March 2008.
Contact: Charles Jillings
Utilico Emerging Markets Limited
01372 271486
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 35 minutes ago Prudential
- 47 minutes ago Vanquis Banking Group 20
- 3 hours ago Frasers Group
- 3 hours ago Cavendish Financial
- 3 hours ago Diaceutics