Clime Capital Announces 6.5% Annual Interest on CAMG Convertible Notes with Monthly Payments Starting September 2025

Overview of Clime Capital and Its Convertible Bond Offering

Clime Capital Limited, listed on the ASX under ticker CAM and registered with ABN 99106282777, has structured its capital raising through convertible bonds. These bonds combine fixed income features with the option to convert into ordinary shares. The CAMG Convertible Bond 6.50% 30-11-28 is a key element of the company’s debt financing strategy, offering investors a steady income stream through monthly interest payments.

Convertible notes are hybrid financial instruments that merge bond and equity characteristics. They provide holders with predetermined interest payments and the opportunity to convert into ordinary shares under specified terms. This structure enables Clime Capital to raise capital potentially at lower interest costs compared to traditional debt, while offering investors downside protection via fixed interest and upside potential through equity conversion.

Monthly Interest Payment Timeline and Important Dates for August 2026

The recent update specifies the payment schedule for the upcoming interest distribution on the CAMG notes. The ex-date is set for 3 August 2026, followed by the record date on 4 August 2026, with the interest payment made on 14 August 2026. Security holders recorded by the record date will receive the payment, facilitating effective portfolio planning.

The interest period covers 1 July 2026 to 31 July 2026 (31 days). At the 6.5% annual rate, the pro-rated interest for this period equals 0.552055% of the note’s face value, resulting in a payment of AUD 0.00552055 per CAMG note. This monthly payment model offers consistent income to note holders, supporting predictable cash flow.

6.5% Annual Interest Rate Effective September 2025

From 1 September 2025, the CAMG notes will carry a fixed interest rate of 6.5% per annum, paid monthly. This fixed rate underpins each month’s interest calculation, adjusted for the number of days in the relevant calendar month to ensure precise pro-rata payments.

The fixed interest rate provides investors with income certainty, unlike floating-rate instruments tied to external benchmarks. Monthly payments, rather than quarterly or semi-annual, offer investors more frequent access to income, appealing to those seeking regular cash flow from their investments.

Maturity Date Set for 30 November 2028

The CAMG Convertible Notes mature on 30 November 2028, defining the investment horizon. At maturity, holders will decide whether to convert their notes into ordinary shares or receive principal repayment. This maturity date is approximately two and a half years after the effective interest rate date, allowing investors to plan their strategies accordingly.

Understanding the maturity and conversion options is crucial for investors. The CAMG Notes Prospectus 2025 provides comprehensive details on conversion terms, redemption provisions, and other conditions applicable at maturity.

Interest Payments in Australian Dollars and Non-Franked Status

Interest payments are made in Australian dollars (AUD), aligning with the notes’ ASX listing and benefiting Australian investors by avoiding currency conversion risks. The payments are not franked, meaning no franking credits are attached, which affects the tax treatment for Australian residents who will treat the interest as ordinary income without tax offsets.

The non-franking status is typical for convertible notes and debt instruments, differing from franked dividends on ordinary shares. Investors should consider this when evaluating after-tax returns compared to other investments.

Interest Payment Excludes Principal Repayment

The interest payment scheduled for 14 August 2026, amounting to AUD 0.00552055 per security, is solely an interest distribution with no principal repayment component. This distinction is important for accounting and tax purposes, as interest income is treated differently from capital returns.

This aligns with the notes’ structure, where principal repayment or conversion occurs only at or near maturity, while regular interest payments provide ongoing income throughout the holding period.

No External Approvals Required for Interest Payment

Clime Capital confirms that no special approvals—such as security holder consent, court orders, ASIC filings, ACCC, FIRB, or other regulatory permissions—are needed to process the interest payment. This ensures the payment can proceed smoothly on schedule without procedural delays.

The absence of required approvals enhances administrative efficiency and investor confidence in the timely receipt of interest payments, subject only to normal operational contingencies.

Refer to CAMG Notes Prospectus 2025 for Full Terms and Conditions

Investors are directed to the CAMG Notes Prospectus 2025 for detailed information on the convertible notes’ legal framework, including conversion mechanics, redemption rights, default events, and other critical terms. The prospectus is essential for comprehensive due diligence before investing or continuing to hold CAMG notes.

The prospectus is accessible at: https://clime.com.au/wp-content/uploads/2025/12/Convertible-Notes-Prospectus-2025.pdf. Reviewing this document is strongly recommended to fully understand the investment’s rights and risks.

Interest Calculation Details and Payment Per Security

The interest payment of AUD 0.00552055 per security is calculated based on the 6.5% annual rate and the 31-day payment period for July 2026. This pro-rata calculation method ensures accurate and fair interest distributions that reflect the actual days in each payment cycle.

Transparency in the calculation process allows investors to independently verify interest amounts, reinforcing trust in the payment system. Monthly payment amounts will vary naturally with differing month lengths, following the pro-rata approach outlined in this announcement.