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Pallas Capital FM Trust conducting final raise before pricing revised

Fixed Income News Australia .

Pallas Capital is conducting a final raise for the Pallas FM Trust up to 31 March 2021 at its current 7.5% yield after which remaining tranches will be priced at 7.0% yield to maturity or less.

Pallas Capital executive director Mark Spring said, “Given the high demand for property First Mortgage investments, we anticipate a compression of spreads in this asset class, and so once this tranche closes on 31 March the remaining tranches will be priced at 7.0% yield to maturity or less.”

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The bond already has raised over $30 million, and once the next tranche of the bond is released, Pallas expects a greater degree of interest from institutional investors up to the full raise of $100 million.

Minimum investment per note is A$10,000 with a maturity date of 30 November 2024.

Investments are backed by registered First Mortgage Security over premium, metropolitan pre-development, development and investment properties in Sydney and Melbourne.

Pallas Capital launched this high yield bond issue late last year through Australian Bond Exchange.

Established in 2016, Pallas specialises in the provision of structured debt and equity products to Australian real estate owners and developers.

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