1. Scottish Mortgage update

    Scottish Mortgage raises further borrowings of £188 million

  2. Scottish Mortgage seeks to enhance shareholders’ long term returns by raising further long term debt at very attractive pricing levels.
  3. Scottish Mortgage Investment Trust PLC announces that it has raised a further c£188 million in long-term, fixed rate, senior, unsecured private placement notes, denominated in a mixture of Sterling and Euros. This transaction has provided the Company with further long-term financing at very attractive rates.

    These new notes are part of Scottish Mortgage’s existing gearing facilities. The Board remains committed to the strategic use of borrowings for the Company, in the belief that gearing the portfolio in this way will enhance returns to shareholders over the long term. As Scottish Mortgage’s assets have grown in recent years, the Board has increased the absolute level of the borrowings in order to maintain the relative level of gearing of the portfolio. This is the third set of private placement notes issued by the Company.

    The new private placement agreement provides for total additional borrowings of £188 million, through the issuance of three notes: one 20-year note for £150 million with a fixed coupon of 2.30%, one 25-year note for EUR 18 million with a fixed coupon of 1.65% and a 30-year note for EUR 27 million with a fixed coupon of 1.77%. All coupons will be payable semi annually. The funding date for all three tranches was the 15 January 2020.

    Once again, Banco Santander S.A. London acted as the placement agent for the transaction.

  4. Fiona McBain, Chairman of Scottish Mortgage, says:

    “The Board views the capacity to issue modest amounts of debt as one of the principal advantages of Scottish Mortgage’s investment trust structure. I am delighted to say that that the Company continues to be able to raise private placement debt at highly attractive long-term rates. This is reflective of the enduring strength of Scottish Mortgage’s proposition and should enhance the long-term returns for our shareholders.”

  5. Performance


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    Discrete Annual Performance (%)


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    Performance source: Morningstar and underlying index provider, total return.
    *FTSE All-World Index. 

    All data as at 31 December 2019 unless otherwise stated.

    Past performance is not a guide to future returns.


    The value of shares in Scottish Mortgage, and any income from them, can fall as well as rise and investors may not get back the amount invested. Investment markets and conditions can change rapidly.

    The views expressed in this article are those of Scottish Mortgage and should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect personal opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.

    This article contains information on investments which does not constitute independent research. Accordingly, it is not subject to the protections afforded to independent research and Baillie Gifford and its staff may have dealt in the investments concerned.

    The trust's risk could be increased by its investment in unlisted investments.  These assets may be more difficult to buy or sell, so changes in their prices may be greater.  Due to the trust's investments in overseas securities, changes in the rates of exchange may also cause the value of investments to go down or up. Scottish Mortgage also invests in emerging markets and is only suitable for those investors prepared to accept a higher level of risk. The trust can borrow money to make further investments (sometimes known as 'gearing' or 'leverage'). The risk is that when this money is repaid by the trust, the value of the investments may not be enough to cover the borrowing and interest costs, and the trust will make a loss. If the trust's investments fall in value, any invested borrowings will increase the amount of this loss.

    Baillie Gifford & Co Limited is authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies. Scottish Mortgage Investment Trust PLC (Scottish Mortgage) is listed on the London Stock Exchange and is not authorised or regulated by the FCA.

    A key information document is available here.


    Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. FTSE® is a trade mark of the relevant LSE Group companies and is used by any other LSE Group company under license. “TMX®” is a trade mark of TSX, Inc. and used by the LSE Group under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.


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