LIBOR CESSATION

M&G CREDIT INCOME INVESTMENT TRUST PLC

(the "Company")

 

LIBOR CESSATION

Prior to the cessation of the LIBOR benchmark on 31st December 2021, the Board of M&G Credit Income Investment Trust plc (the "Company") would like to outline the steps being taken by M&G Alternatives Investment Management Ltd, the Company's investment manager (the "Investment Manager"), to manage this transition in respect of the underlying portfolio.

As the Company's shareholders may be aware, the production of LIBOR (London Interbank Offered Rate) will cease at the end of 2021, being replaced by SONIA (Sterling Overnight Index Average rate) on 1st January 2022. Similar Interbank Offered Rates (IBORs) used in other markets are also being replaced, albeit at different times. The Investment Manager has been, and continues to be, actively engaged with public issuers to understand their IBOR transition plans.

Where the Company holds in its portfolio private investments which reference an IBOR, the Investment Manager is working, or will endeavour to work, with the borrowers and their agents to make appropriate amendments to the deal terms to accommodate the cessation of the respective IBOR. In this process, the Investment Manager is dependent on consent from the borrower, and often from other lenders.

Based on the Investment Manager's review of the portfolio the Board does not expect any material effect on the portfolio from the transition. Further, the adoption of SONIA will not affect the way in which the portfolio is managed.

As previously documented in the Half Year Report to 30th June 2021, the Investment Manager continues to believe that an annual total return, and thus ultimately a dividend yield, of LIBOR (and SONIA from January 2022) plus 4% will continue to be achievable over the longer term, although there can be no guarantee that this will occur in any individual year.

For further information please contact the Investment Manager via the Company Secretary.

 

All enquiries: M&G Credit Income Investment Trust plc	07709 516 048
Link Company Matters Limited, Company Secretary

M&G Credit Income Investment Trust plc LEI: 549300E9W63X1E5A3N24