UTILICO GLOBAL INCOME PLC (LEI: CQOYVD9LLFQK70)

Transcription

1 22 May 2018 THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, SOUTH AFRICA OR ANY MEMBER STATE OF THE EUROPEAN UNION (OTHER THAN THE UK AND THE REPUBLIC OF IRELAND) OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. This announcement is an advertisement and not a prospectus. Investors should not purchase or subscribe for any transferable securities referred to in this announcement except on the basis of information contained in the prospectus published by Utilico Global Income plc ( UGI or the Company ) in connection with the Issue of up to 100 million Shares by way of an Initial Placing, Offer for Subscription and Intermediaries Offer and a Placing Programme for up to 175 million Shares (less the aggregate number of Shares issued pursuant to the Initial Issue) (the Prospectus ). This announcement is not an offer to sell, or a solicitation of an offer to acquire, securities in the United States or in any other jurisdiction where to do so might constitute a violation of the relevant laws or regulations of such jurisdiction. Neither this announcement nor any part of it shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever. Without prejudice to the generality of the foregoing, this announcement does not constitute a recommendation regarding any securities. UTILICO GLOBAL INCOME PLC (LEI: CQOYVD9LLFQK70) Intention to Float on the Premium Segment of the Official List of the UK Listing Authority and to commence trading on the Main Market of the London Stock Exchange Publication of Prospectus for the issue of up to 100 million Shares by way of an Initial Placing, Offer for Subscription and Intermediaries Offer and a Placing Programme for up to 175 million Shares The Board of Utilico Global Income plc today announces its intention to launch a new actively managed income investment trust raising up to 100 million by way of an Initial Placing, Offer for Subscription and Intermediaries Offer of up to 100 million Shares at a price of 1.00 per Share ( Initial Issue ). The Company has appointed ICM Limited ( ICM ) and ICM Investment Management Limited ( ICMIM ) as its joint portfolio managers. UGI aims to provide long-term total returns through rising regular quarterly dividend payments and capital growth from a diversified global portfolio of equity and corporate bond investments. There will be an emphasis on infrastructure and utility sectors in both developed and emerging markets. The Company will target an initial dividend yield of at least 5 per cent. for the financial year ending 30 September 2019 and a total Shareholder return target of 7.5 per cent. to 10 per cent. per annum, with a strong focus on capital preservation. Applications will be made for all the Shares to be admitted to the premium listing segment of the Official List and to trading on the London Stock Exchange s main market. It is expected that Admission will become effective and that dealings in the Shares issued pursuant to the Initial Issue will commence at 8:00 a.m. on 22 June 2018.

2 A copy of the Prospectus will be submitted to the National Storage Mechanism and will shortly be available for inspection at: and on the Company's website: A Key Information Document will also shortly be available on the Company's website: Stockdale Securities Limited and Investec Bank plc are acting as Joint Placing Agents and Scott Harris UK Limited is acting as the Intermediaries Offer Adviser. Vivien Gould, the newly appointed Chairman of UGI said: I am pleased to be announcing our intention to float such a compelling new investment trust. Charles Jillings and the team have demonstrated their ability to invest in well-managed, cash generative companies in the listed utility and infrastructure sectors. Their 13 year track record of managing Utilico Emerging Markets Trust plc is testament to this. For investors seeking a greater yield and regular income, Utilico Global Income plc is a new investment trust they should consider. ICM and ICMIM have extensive resources, experience and processes with regard to launching and managing successful closed-end funds. Their research activities will provide a rich source of attractive opportunities for the new Company. I look forward to chairing such an experienced Board and working with Charles and his team. Charles Jillings, CEO of ICM Investment Management Limited and Director of ICM Limited said: This is a very exciting time for ICM and ICMIM. We have an experienced global investment management team which has over 100 years of collective investment experience focused on both equity and credit markets in global and emerging markets. Our investment process enables us to identify investments that we believe trade below their intrinsic values, while offering a significant margin of safety. With an emphasis on the infrastructure and utility sectors in both the developed and emerging markets and an investment objective to provide long-term total returns through rising regular quarterly dividend payments and capital growth, the launch of Utilico Global Income plc will therefore play to our strengths. Name of contact and telephone number for enquiries: ICM Investment Management Limited Charles Jillings / Alastair Moreton Stockdale Securities Limited (Joint Placing Agent) Robert Finlay / Rose Ramsden Investec Bank plc (Joint Placing Agent) Darren Vickers

3 Scott Harris (Intermediaries Offer Adviser) Jeremy Wiseman / Jamie Blewitt Media Enquiries: Montfort Communications Gay Collins / Toto Reissland-Burghart / utilico@montfort.london Expected Timetable Initial Issue Initial Placing, Offer for Subscription and Intermediaries Offer opens 22 May 2018 Latest time and date for receipt of completed Application Forms in respect of the Offer for Subscription Latest time and date for receipt of completed applications from the Intermediaries in respect of the Intermediaries Offer Latest time and date for commitments under the Initial Placing Publication of results of the Initial Placing, Offer for Subscription and Intermediaries Offer Admission and dealings in Shares issued pursuant to the Initial Issue commence CREST accounts credited in respect of Shares issued in uncertificated form pursuant to the Initial Issue Share certificates in respect of Shares issued pursuant to the Initial Issue in certificated form despatched by post a.m. on 18 June a.m. on 18 June a.m. on 18 June June a.m. on 22 June June 2018 week commencing 2 July 2018 Placing Programme Placing Programme opens 22 June 2018 Latest date for issuing Shares under the Placing Programme 20 May All references to times are to London times 2. All times and dates may be subject to adjustment. Any changes will be notified through an RIS.

4 Key Highlights Initial target fund raise of 100 million UEM and ICMIM have undertaken to subscribe 10 million and 0.25 million respectively, pursuant to the Initial Placing A new actively managed income investment trust Aim to provide long-term total returns to shareholders through rising regular quarterly dividend payments and capital growth Diversified global portfolio of equity and corporate bond investments Portfolio emphasis will be global infrastructure and utility sectors Strong focus on capital preservation Targets an annualised total return of 7.5 per cent. to 10.0 per cent.* Targets an initial dividend yield of at least 5.0 per cent.* to shareholders for year ending September 2019 derived from underlying portfolio** Dividends paid quarterly Team has over 100 years of collective investment experience Long-term, bottom-up, value investment approach Illustrative portfolio: - Number of holdings up to 90 - Likely asset allocation split 60 per cent. equities, 40 per cent. corporate bonds - Likely geographical split 60 per cent. developing markets, 40 per cent. developed markets Annual management fee of 0.8 per cent. Life unlimited, with 5 year continuation vote Fully invested expected to be approximately three months from initial admission Leverage - up to 20 per cent. permissible through bank debt Shares are being offered to Intermediaries who will facilitate the participation of their retail investor clients located in the United Kingdom * Target only and not a profit forecast ** Based on initial offer price Board of Directors Vivien Gould, Chairman Vivien has worked in the financial services sector since She was a founder director of River & Mercantile Investment Management Limited (1985), a boutique manager of equity income investment trusts. Vivien served as a senior executive and Deputy Managing Director with the Group until During this period, she was a member of the Executive Committee of the Association of Investment Companies. Vivien then worked as an independent consultant and served on the boards of a number of investment management companies and listed investment trusts. Between 2001 and 2004 she served as an executive director of Gartmore Investment Management. More recently, Vivien served as a Trustee and Chairman of the Investment Committees of the Stroke Association and John Ellerman Foundation. She is currently a non-executive Director of The Lindsell Train Investment Trust PLC.

5 Laurence Hollingworth, Non-executive Director Laurence has over 35 years of experience in investment banking. He joined Cazenove & Co stockbrokers, in 1980 and spent nearly 20 years involved in US equities before moving to head International Capital Markets in He was appointed joint head of UK Equity Capital Markets in 2005 and sole head in In 2010, Cazenove & Co was sold to J.P. Morgan Chase and in 2011 he became head of UK Investment Banking at JPMorgan Cazenove. He was appointed head of the EMEA Industry and Corporates coverage teams in In 2016 he was appointed as a Vice Chairman of J.P. Morgan Securities plc. He has a LLB (Hons) from the University of Birmingham. Michael Wrobel, Non-executive Director Michael has over 30 years of experience in the investment industry. He is the non-executive Chairman of Diverse Income Trust PLC and Civitas Social Housing plc. He serves as a trustee director of the BAT UK Pension Fund and Chair of its Investment and Funding Committee. He is also the Chairman of trustees of the Thorntons Pensions Scheme, a trustee of the Cooper Gay (Holdings) Ltd Retirement Benefits Scheme and acts as an investment advisor to a number of Rio Tinto pension schemes. Formerly, he was a non-executive director of JPMorgan European Smaller Companies Trust PLC and NatWest Smaller Companies PLC. He has served as a director of the Association of Investment Companies and Investment Management Association. He previously worked at Morgan Grenfell, Fidelity International, Gartmore Investment Management and F&C Management. Michael has an M.A. in Economics from Cambridge University. All of the Directors are regarded as independent of the Joint Portfolio Managers. Investment Objective The Company s investment objective is to provide long-term total returns to Shareholders through rising regular quarterly dividend payments and capital growth. Investment Policy The Company s investment policy is to invest in a range of financial instruments, comprising predominantly equities and fixed income securities, globally and across all sectors of the market. There will be an emphasis on infrastructure and utility sectors in both developed and emerging markets. Whilst there are no specific limits placed on exposure to any one particular sector, the Company will at all times invest and manage the portfolio in a manner consistent with spreading investment risk. The Company has the flexibility to invest in equity and equity-related securities, bonds, convertibles and other types of securities including non-investment grade bonds, and to invest in unlisted securities. The Company may also use derivative instruments such as American Depositary Receipts, promissory notes, contracts for difference, financial futures, call and put options and warrants for investment purposes and efficient portfolio management. The Company may from time to time actively seek to protect the Company s portfolio and balance sheet from major corrections. This would include foreign currency hedges, interest rate hedges, stock market index put and call options and similar instruments.

6 Investment Restrictions The Board has prescribed the following restrictions on the investment policy, all of which are at the time of investment unless otherwise stated: - investments in unquoted and untraded investments in aggregate must not exceed 10 per cent. of Gross Assets at the time of investment; - no single investment may exceed 20 per cent. of Gross Assets at the time of investment; - investments in a single country must not exceed 30 per cent. of Gross Assets at the time of investment (and for these purposes investments will be considered to have been made in the countries where the relevant investee company reports that it carries out its business operations, as determined on a look-through basis); - not more than 10 per cent. in aggregate of the value of the total assets of the Company at the time the investment is made will be invested in other closed-ended investment funds which are listed on the Official List maintained by the UK Listing Authority (except to the extent that those investment funds have stated investment policies to invest no more than 15 per cent. of their total assets in other investment funds which are listed on the Official List); - regardless of the investment policy of other closed-ended investment funds listed on the Official List and which are invested in by the Company, the Company shall not invest in such funds more than 15 per cent. in aggregate of the value of the total assets of the Company at the time the investment is made; and - derivative instruments must not exceed 20 per cent. of Gross Assets at the time of investment. None of the above restrictions will require the realisation of any assets of the Company where any restriction is breached as a result of any increases or decreases in the value of the Company s assets which occur after the investment is made, but no further relevant assets may be acquired or loans made by the Company until the relevant restriction can again be complied with. Borrowing and Gearing Policy The Company may, from time to time, use bank borrowings for short-term liquidity purposes. In addition, the Directors may gear the Company by borrowing on a longer term basis for investment purposes. Borrowings at the time of draw down must not result in gearing (being total borrowings measured against gross assets) exceeding 20 per cent. Borrowings may be drawn down in Sterling, US Dollars or any currency for which there are corresponding assets within the Company s portfolio (save that at the time of draw down the value drawn must not exceed the value of the relevant assets in the portfolio).

7 Dividend Policy and Target Returns The Company will target an initial dividend yield of at least 5 per cent. by reference to the Initial Issue Price for the financial year ending 30 September Distributions on the Shares are expected to be paid quarterly in March, June, September and December each year, with the first quarterly dividend expected to be declared in respect of the quarter ending 31 December 2018 and paid in March In determining dividend payments the Board will take account of factors such as income forecasts, retained revenue reserves and the Company s dividend payment record. However, in order to maintain its approval as an investment trust, the Company intends to distribute at least 85 per cent. of its distributable income earned in each financial year by way of dividends. The Company will seek to maintain the above dividend policy. To the extent that the Company s net income (calculated as received revenue less the operating costs of the Company charged to the revenue column of the Company s income statement) in any financial period exceeds the amount paid as dividend, this excess may be retained by the Company for use in smoothing future dividend payments (subject to satisfying the requirements for maintaining investment trust status). Conversely, to the extent that the payment of the target dividend, or any other dividend, would represent an amount greater than the Company s net income (calculated as above) for the relevant period, such dividend payment would have to be made out of the capital profits of the Company. The Company has been granted authority to apply to court to cancel the entirety of its share premium account following Initial Admission. The resultant reserve may be used, where the Board considers it appropriate, by the Company for the purposes of paying dividends to Shareholders and, in particular, smoothing payments of dividends to Shareholders. There is no guarantee that the Board will in fact make use of such reserve for the purposes of the payment of dividends to Shareholders. The Company will also target a total Shareholder return (Net Asset Value growth plus dividends) of 7.5 per cent. to 10 per cent. per annum with a strong focus on capital preservation. The target dividend and target total Shareholder returns set out above are targets only and not profit forecasts. There can be no assurance that these targets will be met and they should not be taken as an indication of the Company s expected or actual future results. Accordingly, potential investors should not place any reliance on these targets in deciding whether or not to invest in the Company and should not assume that the Company will make any distributions at all and should decide for themselves whether or not the target dividend and the target total Shareholder returns are reasonable or achievable. Management of the Company The Directors are responsible for the determination of the Company s investment objective and investment policy and have overall responsibility for its day-to-day activities, including the review of investment activity and performance. The Company has, however, entered into the

8 Management Agreement with ICMIM and ICM under which ICMIM has been appointed as the Company s AIFM with sole responsibility for risk management and both ICMIM and ICM have been appointed as joint portfolio managers with responsibility for the management of the Company s assets, subject in each case to the overriding supervision of the Directors. ICMIM is authorised and regulated by the FCA to act as an alternative investment fund manager pursuant to the AIFM Regulations. ICM, the Company s joint portfolio manager, is licensed to carry on business in Bermuda, including providing investment advice to the Company, by the Minister of Business Development and Tourism of Bermuda. The Management Agreement has an initial term ending 5 years from the date of Initial Admission, following which it may be terminated by the Company or the Joint Portfolio Managers providing 6 months written notice of termination to the other. In addition to its duties as joint portfolio manager of the Company, ICMIM also provides company secretarial services to the Company. ICMIM has also agreed to provide or procure the provision of certain administrative support services (including middle office, market dealing and information technology support services). Investment Philosophy The Joint Portfolio Managers investment philosophy is to focus on investments where they believe the underlying value is not reflected in the market price. This philosophy has the following features: - searching for under-valued companies that are often under-rated and underresearched; - analysing opportunities arising through technological development, market changes, competition or shareholder issues; - using knowledge of and expertise in financial engineering and different financial instruments; - developing techniques to compare companies across geographical regions and across industries; - maintaining close working relationships with investee companies including visiting their key operational sites; - maintaining a strong understanding of the infrastructure, utility and related sectors and their regulation; and - possessing a sensitivity to step changes resulting from developments in regulation and competition. In accordance with the Company s investment policy, the Joint Portfolio Managers may also use hedging instruments, where appropriate, to protect the Company s portfolio from market volatility.

9 Investment Process The Joint Portfolio Managers follow a systematic investment process. They source and analyse investment opportunities before making investments where they believe they would offer good value. ICMIM and ICM are the joint portfolio managers to two listed funds, UIL Limited and Utilico Emerging Markets Trust plc, and ICM has a number of other investment mandates, including private equity, fixed interest and mining. The Joint Portfolio Managers have an established network of industry contacts and investment opportunities are sourced through a combination of sector knowledge and monitoring and a review of markets. Between them, the Joint Portfolio Managers have a good long term record in stock selection across the infrastructure and utilities sectors and of financial and investment structuring; have an investment team which collectively has over 100 years investment experience; and currently have over 14.5 billion of assets under management, directly and indirectly in a range of mandates. In the corporate bond market, the Joint Portfolio Managers seek investment opportunities to deliver long-term returns while minimising risk, by focusing on value, bottom up analysis and absolute return. Terms used and not defined in this announcement bear the meaning given to them in the Prospectus unless the context otherwise requires. Notes to Editors: ICM Limited ( ICM ) and ICM Investment Management Limited ( ICMIM ) are global asset managers Over 50 staff, 14 analysts and 7 offices globally Over 100 years of collective investment experience Long term, bottom-up, value investment approach ICMIM is UK based and FCA regulated Core Strengths and Disciplines of Team Infrastructure and utilities Fixed income securitisation and corporate bonds Financial services Resources Technology Fintech and Paytech Corporate finance Corporate and financial management Existing mandates UIL Investment company with gross assets of 490m, listed on the LSE UEM Investment trust with gross assets of 580m, listed on the LSE Somers Investment holding company with gross assets of US$395m, listed on the BSX Zeta Resources Investment company with gross assets of A$140m, listed on the ASX Pentagon (unlisted) - Global Diversified Bond Fund - Global High Conviction Bond Fund

10 Important Notice The contents of this announcement, which has been prepared by and is the sole responsibility of the Company, have been approved by ICM Investment Management Limited ( ICMIM ) solely for the purposes of Section 21(2)(b) of the Financial Services and Markets Act 2000 (as amended). ICMIM is authorised and regulated in the United Kingdom by the Financial Conduct Authority. ICMIM is acting for the Company and no one else in connection with the Issue and Admission and will not be responsible to anyone other than the Company for providing the protections afforded to clients of ICMIM or for affording advice in relation to any transaction or arrangement referred to in this announcement. The merits or suitability of any securities must be independently determined by each investor on the basis of its own investigation and evaluation of the Company. Any such determination should involve, among other things, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of the securities. The information contained in this announcement is for background purposes only and does not purport to be full or complete and may not be used in making any investment decision. This announcement does not contain sufficient information to support an investment decision and investors should ensure that they obtain all available relevant information before making any investment. This announcement does not constitute and may not be construed as an offer to sell, or an invitation to purchase or otherwise acquire, investments of any description, nor as a recommendation regarding the possible offering or the provision of investment advice by any party. No information in this announcement should be construed as providing financial, investment or other professional advice and each prospective investor should consult its own legal, business, tax and other advisers in evaluating the investment opportunity. No reliance may be placed by any person for any purposes whatsoever on this announcement, or its accuracy, fairness or completeness. Nothing in this announcement constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. The information contained in this announcement is given at the date of its publication (unless otherwise marked). No reliance may be placed for any purpose whatsoever on the information or opinions contained in this announcement or on its completeness, accuracy or fairness. This announcement has not been approved by any competent regulatory or supervisory authority. The information in this announcement may include forward-looking statements, which are based on the current expectations and projections about future events and in certain cases can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereon) or other variations thereon or comparable terminology. These forward-looking statements, as well as those included in any related materials, are subject to risks, uncertainties and assumptions about the Company, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In

11 light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. Each of the Company, the Joint Portfolio Managers, the Joint Placing Agents and their respective affiliates expressly disclaims any obligation or undertaking to update, review or revise any forward looking statement contained in this announcement whether as a result of new information, future developments or otherwise. Each of the Company, the Joint Portfolio Managers, the Joint Placing Agents and their respective affiliates, officers, employees and agents expressly disclaim any and all liability which may be based on this announcement and any errors therein or omissions therefrom. The date of Admission may be influenced by things such as market conditions. There is no guarantee that Admission will occur and you should not base your financial decisions on the Company's intentions in relation to Admission at this stage. Acquiring investments to which this announcement relates may expose an investor to a significant risk of losing the entire amount invested. Persons considering making such investments should consult an authorised person specialising in advising on such investments. This announcement does not constitute a recommendation concerning the Issue. The value of shares can decrease as well as increase. Potential investors should consult a professional advisor as to the suitability of the Issue for the person concerned. No representation or warranty is given to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any. Any views contained herein are based on financial, economic, market and other conditions prevailing as at the date of this announcement. The information contained in this announcement will not be updated. The target gross proceeds is a target only and should not be taken as an indication of the gross proceeds which will be raised under the Initial Issue or the Issue as a whole. This announcement does not constitute or form part of, and should not be construed as, any offer or invitation or inducement for sale, transfer or subscription of, or any solicitation of any offer or invitation to buy or subscribe for or to underwrite, any share in the Company or to engage in investment activity (as defined by the Financial Services and Markets Act 2000) in any jurisdiction nor shall it, or any part of it, or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction. This announcement does not constitute a recommendation regarding any securities. Neither this announcement nor any part or copy of it may be taken or transmitted into the United States, Australia, Canada, South Africa, Japan, New Zealand or distributed directly or indirectly to US Persons (as defined below) or in the United States, Australia, Canada, South Africa, Japan or New Zealand. Any failure to comply with this restriction may constitute a violation of applicable law. This announcement does not constitute an offer of securities to the public in the United States, Australia, Canada, South Africa, Japan or New Zealand or in any other jurisdiction. Persons into whose possession this announcement comes should observe all relevant restrictions.

12 The Company has not been and will not be registered under the United States Investment Company Act of 1940, as amended (the "Investment Company Act"), and as such investors will not be entitled to the benefits of the Investment Company Act. The Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered, sold, resold, pledged, transferred or delivered, directly or indirectly, into or within the United States or to, or for the account or benefit of, any "U.S. persons" as defined in Regulation S under the Securities Act ("US Persons"), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States and in a manner which would not require the Company to register under the Investment Company Act. There will be no public offer of the Shares in the United States, Australia, Canada, South Africa, Japan or New Zealand. Stockdale, which is authorised is authorised and regulated in the United Kingdom by the FCA and Investec, which is authorised in the United Kingdom by the Prudential Regulation Authority and regulated by the FCA and the Prudential Regulation Authority are each acting for the Company and no one else in connection with the Initial Issue, Placing Programme and Admission and will not be responsible to anyone other than the Company for providing the protections afforded to clients of the Joint Placing Agents or for affording advice in relation to any transaction or arrangement referred to in this announcement. This announcement does not constitute any form of financial opinion or recommendation on the part of the Joint Placing Agents or any of their respective affiliates and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities. None of the Joint Placing Agents is responsible for the contents of this announcement or the Prospectus. This does not exclude any responsibilities which the Joint Placing Agents may have under the Financial Services and Market Act 2000 or the regulatory regime established thereafter. INFORMATION TO DISTRIBUTORS Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the "MiFID II Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the Shares have been subject to a product approval process, which has determined that such Shares are: (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the "Target Market Assessment"). Notwithstanding the Target Market Assessment, distributors should note that: the price of the Shares may decline and investors could lose all or part of their investment; the Shares offer no guaranteed income and no capital protection; and an investment in the Shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without

13 prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Issue. For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the Shares. Each distributor is responsible for undertaking its own target market assessment in respect of the Shares and determining appropriate distribution channels. PRIIPS REGULATION In accordance with the Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) and its implementing and delegated acts (the "PRIIPs Regulation"), a key information document in respect of the Shares has been prepared by ICMIM and is available to investors at If you are distributing the Shares, it is your responsibility to ensure that the relevant key information document is provided to any clients that are "retail clients".