Originally published at: http://whichinvestmenttrust.com/p2p-global-tipped-by-liberum-as-it-considers-issuing-more-shares/
After two successful share issues and trading on a consistent premium the Board is considering raising additional capital to take advantage of the growth in demand for debt.
P2P Global Investments (P2PGI) has announced that it has successfully deployed 67% of its most recent fund raising by way of a C-share issue in January this year. C-shares are run alongside existing shares until the new pot of money is invested, so that it doesn’t have a detrimental impact upon existing shareholders. It is likely that the C-share issue will be converted to ordinary shares in July once they are 90% invested.
P2PGI invests in credit/loans via online lending platforms globally. It was the first UK listed investment trust in the P2P lending industry. The company has multiple agreements with leading P2P platforms in the US and Europe, but importantly, it has also negotiated a potentially lucrative option of acquiring equity stakes in platforms with up to a maximum 5% of its gross assets.
P2PGI’s house broker Liberum has placed a buy recommendation on the shares, despite both the ordinary shares and the C-share issue trading on 8-9% premium’s to the NAV (net asset value) which is the value of the underlying holdings. Liberum highlights the equity holdings in the various platforms as being one area where the trust could outperform, but also points to the attractive yield of circa 8%.
The trust has attracted investment from Neil Woodford and his successor at Invesco Mark Barnett.