Legg Mason's EnTrustPermal targets $250m for direct lending trust launch

Debt financing to the shipping industry

Legg Mason affiliate EnTrustPermal is launching an investment trust via a placing and offer for subscription, which will target $250m (£190m) of fund raising, for a direct lending strategy focussed on the global shipping industry's $80bn (£60.9bn) debt requirements.

Listed on the London Stock Exchange (LSE) at an issue price of $1 for each of the 250 million ordinary shares, the Blue Ocean Maritime Income investment trust will target a yield of 7% a year by providing debt finance to predominantly senior secured, small to medium-sized, privately-owned shipping companies. The frontiers set to cash in on China's $6trn 'Silk Road' initiative Targeting a NAV total return of 8-10% per annum over the medium term on opening, the trust will seek to exploit the shortfall caused by the significant post-2008 reduction in bank financing provided to an industr...