Alliance Trust PLC has issued ?70 million fixed rate privately placed notes in two tranches of ?20 million and ?50 million respectively, with maturities of 7 years and 10 years and coupons of 4.02% and 4.18%. The closing and settlement date is 1 December 2023 with interest payable semi-annually. The purpose of this transaction is to obtain fixed rate, medium-dated Euro denominated financing at a pricing level that the Company considers attractive.

The transaction is expected to provide the Company with a long-term benefit through a full market cycle. The proceeds of the financing will be used to repay some of the Company?s existing floating rate bank borrowings, such that the Company?s current drawn borrowings will remain broadly unchanged. As a result of these changes, the company?s weighted average borrowing costs will reduce from 4.7% pa to 3.8% pa.