Impact Healthcare secures £50m interest rate cap

18th Aug 2023 07:20

(Sharecast News) - Impact Healthcare REIT announced the acquisition of a new £50m interest rate cap on Friday, set against the Sterling Overnight Index Average (SONIA) at a rate of 4.0%.

The London-listed real estate investment trust said the cap, effective for two years, would expire on 15 August 2025.

It said the process of setting this cap came at a cost of £1.76m.

With the purchase, Impact Healthcare said it had effectively hedged or fixed the interest rates on 92%, or £175m, of its current drawn debt of £191m.

As a result, the group's weighted average cost of drawn debt currently stood at 4.66%, calculated with SONIA pegged at 5.4%.

"The group's gross loan-to-value ratio at 30 June was 28.5%," the Impact Healthcare board said in its statement.

"No further debt has been drawn at the date of this announcement."

Reporting by Josh White for Sharecast.com.