M&G: Credit facility 'one option' to fund redemptions on suspended property portfolio

'Revolving facility' could be used if conditions are right

Daniel Flynn
clock • 3 min read

Fiona Rowley, manager of the suspended £4.4bn M&G Property Portfolio, said a credit facility could provide "one option" for funding redemption requests, provided cash levels and the property market have stabilised once the fund reopens.

Rowley (pictured) said the fund took out a "revolving credit facility" before the EU referendum which could be used to meet requests, provided cash levels are at a minimum of 12.5%, the property market has stabilised, and incoming cash was guaranteed from asset sales. A revolving credit facility is an agreement between a financial institution and an entity which guarantees a maximum amount to be loaned based on a company's balance state, income statement, and statement of cash flows. It is useful for entities that experience sharp fluctuations in cash balances or unexpected expenses. ...

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