Perpetual Credit Income Trust (ASX: $PCI) Capital Raising Announcement

Perpetual Credit Income Trust (ASX: $PCI) has announced a capital raising initiative, involving a placement to wholesale investors at an issue price of $1.10 per unit and an offer to eligible unitholders to participate in a Unit Purchase Plan without incurring brokerage or other transaction costs. The proceeds from the offers are intended to be used to pursue additional investments in line with the Trust's investment strategy and approach.

Executive Commentary on Capital Raising

PCI's Portfolio Manager, Michael Korber, highlighted the Trust's focus on well-diversified floating rate Australian corporate credit as a means of providing protection against prevailing geopolitical headwinds, inflationary pressures, and a higher-for-longer view on rates. He expressed satisfaction with the Trust's 10.2% return over the past year, above the target return of RBA cash rate + 3.25% p.a. (net of fees) through the economic cycle. Korber also mentioned the opportunities for additional capital deployment, including an attractive pipeline of corporate loan and securitised asset deals, complementing relative value opportunities in investment grade and high yield credit and fixed income assets.

Summary of Capital Raising and Outlook

The capital raising initiative by Perpetual Credit Income Trust (ASX: $PCI) through a placement and Unit Purchase Plan aims to increase liquidity and pursue additional investments in line with the Trust's investment strategy. The Trust's focus on well-diversified floating rate Australian corporate credit has delivered a return exceeding the target over the past year. The potential deployment of additional capital into corporate loan and securitised asset deals, along with opportunities in investment grade and high yield credit and fixed income assets, reflects the Trust's ambitions for growth and resilience. The increased liquidity resulting from the capital raising is expected to benefit existing unitholders and attract interest from new investors, brokers, analysts, and financial advisers. The Trust's pursuit of quality issuers and its proactive approach to managing the portfolio indicate a forward-looking strategy aimed at delivering sustainable returns to investors.