Impax Environmental Markets plc

LEI: 213800RAR6ZDJLZDND86

20 July 2023

€60m Private Placement debt issue

The Board of Impax Environmental Markets plc (the "Company") is pleased to announce the successful issue of €60m privately placed notes (the "Notes"), providing the Company with an element of long-term structural debt as part of its investment strategy.

The Company has agreed to issue the Notes to funds managed by Pricoa Private Capital (part of PGIM, Inc) in three tranches as follows:

·    €20m maturing on 1 September 2030 with a floating coupon of Euribor + 1.35%;

·    €30m maturing on 1 September 2033 with a fixed coupon of 4.48%; and

·    €10m maturing on 1 September 2035 with a fixed coupon of 4.63%.

The funding date is expected to be 1 September 2023, subject to customary closing conditions, with interest payable semi-annually. The Notes will be unsecured upon issuance and will provide a combination of fixed and floating rate, long-dated Euro-denominated financing at pricing that the Company considers attractive in the current market conditions and should enhance long-term investment performance.

The proceeds of the Notes will be used to repay drawn debt of $32.2m and £25m provided by The Bank of Nova Scotia, London Branch which matures on 6 September 2023.

The introduction of the Notes falls within the parameters of the Company's existing investment policy, and shareholder approval will therefore not be required for their issue.

Glen Suarez, Chair of the Board, said: "Using structural debt with the aim of enhancing returns for shareholders is a key advantage of the investment trust structure. This financing provides attractive long-term debt capital to be deployed for the benefit of shareholders for many years to come and comes at a time when the Board and the Manager believe that portfolio valuation makes gearing desirable." 

Centrus Financial Advisors Limited acted as arranger of the issue of the Notes.

This announcement is released by Impax Environmental Markets Plc and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (MAR). For the purposes of MAR and the related Implementing Technical Standards, this announcement is made on behalf of Impax Environmental Markets Plc by Apex Listed Companies Services (UK) Limited, Company Secretary

For further information contact: