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LONDON - Templeton Emerging (LON:TEM) Markets Investment Trust PLC (LSE:TEM) has made significant changes to its debt structure, the company announced on Wednesday. On Tuesday, the trust drew down CNH300 million (approximately £31 million) for a one-month period under its existing £122 million revolving loan facility. Additionally, on Wednesday, TEM repaid half of the £80 million previously drawn in pounds sterling, amounting to £40 million.
Following these transactions, the company’s total debt now stands at approximately £71 million, consisting of the remaining £40 million in sterling and the newly acquired CNH300 million. The debt carries a margin of 1.1% per annum over the market reference rate for any of the three permitted currencies (GBP, USD, or CNH). There is also a commitment fee of 0.40% per annum on undrawn amounts.
As of April 30, 2025, Templeton Emerging Markets Investment Trust has no other outstanding debt. The company’s net gearing position, which is the level of debt compared to its net asset value (NAV), is reported at 0.0% when accounting for cash in the portfolio. This indicates a neutral leverage stance, with the trust neither borrowing more than its assets nor holding excess cash.
The company’s financial maneuvering reflects its strategic approach to managing its capital structure and aligning its debt with current market conditions. The trust’s use of a multi-currency revolving loan facility provides flexibility in its borrowing options, allowing it to adapt to changing financial environments.
This announcement is based on a press release statement and contains information relevant to current and potential investors in the trust. The information provided is subject to terms and conditions regarding its use and distribution.
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