RM Secured Direct Lending to back more CBILS finance

RM Secured Direct Lending’s (RMDL) investment manager has received an increased allocation from the British Business Bank to support funding for more coronavirus business interruption loans (CBILS).

RM Funds, which manages the alternative finance-focused fund, was accredited to provide CBILS loans in August 2020.

A stockmarket update from RMDL today (25 January) said RM Funds had already deployed its initial allocation.

“We are delighted to have received an increase to our allocation under the CBILS scheme,” James Robson, chief investment officer at RM Funds, said.

“Not only does this enable us to support British businesses impacted by Covid-19 but which meet our strict investment criteria, the government guarantee acts as a strong credit enhancement for any eligible new loans which can be facilitated under the scheme.”

RMDL is the only listed debt fund supporting the deployment of CBILS funding.

The fund reported a net asset value (NAV) total return of 8.2 per cent for 2019 and said its portfolio outperformed compared with many of its peers.

It focuses on social infrastructure and real estate backed lending, described as “the best place for capital at this point of the cycle.”

Analysts at Numis said RMDL is currently trading at a 5.2 per cent discount to net asset value and described it as “one of the higher quality managers in the listed direct lending sector.”

Read more: Everything we know about the CBILS successor scheme (so far)