MA Income Credit Trust Raises $49.7M in Fully Underwritten Wholesale Placement
MA Income Credit Trust (ASX, MA1) has launched a fully underwritten wholesale placement to raise nearly $50 million, issuing new units at $2.00 each. The capital will support its core credit investment strategy without requiring securityholder approval.
- Wholesale placement to raise approximately A$49.7 million
- Issuance of up to 24.85 million new units at $2.00 per unit
- Placement fully underwritten and conducted under ASX Listing Rule 7.1
- Proceeds to be invested in private credit, asset-backed lending, and direct corporate lending
- New units expected to commence trading on ASX from 2 July 2025
MA Income Credit Trust Launches Capital Raise
MA Income Credit Trust (ASX, MA1), a specialist credit investment trust, has announced a fully underwritten wholesale placement to raise approximately A$49.7 million. The trust plans to issue up to 24,850,253 new units at an offer price of $2.00 per unit. This capital raising is designed to bolster MA1’s investment capacity within its core credit strategy.
Placement Details and Structure
The placement is being conducted under ASX Listing Rule 7.1, which means it does not require securityholder approval, allowing for a swift execution. The new units will rank equally with existing fully paid ordinary units, ensuring no dilution of rights. The placement is fully underwritten, providing certainty of capital raising success. Joint lead managers and arrangers include Moelis Australia Limited, Shaw Partners Limited, and Canaccord Genuity Financial Limited.
Use of Proceeds and Investment Mandate
Proceeds from the placement will be invested in accordance with MA1’s credit investment mandate. This includes direct and indirect exposure to private credit, asset-backed lending, and direct corporate lending. The trust’s investment manager, MA Investment Management Ltd, will deploy the funds to curated credit opportunities aligned with MA Financial’s flagship credit strategies. This approach aims to generate stable income and capital returns for investors.
Timetable and Market Impact
The placement was announced on 23 June 2025, with the offer opening and closing on the same day. Settlement of the new units is scheduled for 30 June 2025, with quotation and trading expected to commence on 2 July 2025. The rapid timetable reflects the trust’s intent to capitalise on current market conditions and investor demand. Investors should note the usual disclaimers regarding forward-looking statements and regulatory compliance included in the announcement.
Strategic Implications
This capital raise positions MA Income Credit Trust to expand its credit portfolio amid a competitive lending environment. By increasing its capital base, MA1 can pursue more diversified and potentially higher-yielding credit investments. The fully underwritten nature of the placement signals strong support from institutional investors and confidence in the trust’s strategy and management team.
Bottom Line?
With fresh capital secured, MA Income Credit Trust is set to deepen its credit investments, but investors will watch closely how effectively the proceeds are deployed.
Questions in the middle?
- How will the placement impact MA1’s unit price and distribution guidance?
- What specific credit opportunities will the new capital target within the private and asset-backed lending sectors?
- Could further capital raisings be anticipated if market conditions remain favourable?
