RAM Income Capital Launches AUD 100 Million Bond Placement with BBSW+3.00% Coupon

RAM Income Capital’s AUD 100 Million Bond Placement to Support Growth

RAM Income Capital Ltd has announced plans to raise up to AUD 100 million through a bond placement consisting of up to 1,000,000 securities under the ASX code RAMHA, each priced at AUD 100.00. This capital raise is a strategic move to bolster the company’s ongoing investment activities and portfolio growth. The bonds are scheduled for issuance on 12 August 2026, pending ASX approval and fulfillment of applicable conditions.

The bonds will be issued as part of an existing class, ensuring they rank equally with previously issued securities in the same class. This equal ranking guarantees consistent treatment for new and existing bondholders without any preference or subordination. Utilizing an existing class streamlines regulatory requirements and offers investors familiarity with the security’s terms.

Coupon Rate of BBSW+3.00% and 2032 Maturity

The bonds offer a coupon rate of BBSW+3.00% per annum, combining a floating benchmark with a fixed margin. The BBSW (Bank Bill Swap Rate) adjusts periodically to reflect current short-term interest rates, while the 3.00% fixed spread provides stable returns. This structure balances investor protection against falling rates with exposure to Australian short-term rate movements.

The bonds mature on 10 April 2032, giving investors a medium-term investment horizon of about six years from issuance. The securities feature a cumulative redemption step structure (CUM RED STEP), which may involve term adjustments at specified intervals. This maturity profile provides RAM Income Capital with stable capital to execute its investment strategy without near-term refinancing pressure.

Joint Lead Managers and Placement Fee Structure

RAM Income Capital has appointed Real Asset Management Pty Ltd, Ord Minnett Limited, and Westpac Institutional Bank as joint lead managers for the bond placement. These institutions bring extensive distribution capabilities and investor networks. The inclusion of Westpac Institutional Bank highlights the company’s effort to reach a broad investor base.

The fee arrangement totals 1.0% of gross proceeds, split into a 0.25% joint lead manager fee and a 0.75% selling fee. For a AUD 100 million placement, management and selling fees amount to AUD 1 million, allocated among the joint lead managers based on their contributions. These fees align with market standards for Australian corporate bond placements and cover underwriting, marketing, distribution, and settlement. Additional costs such as ASX fees, legal expenses, and registry fees will be incurred separately.

Capital Deployment to Expand Investment Portfolio

The bond proceeds will be deployed to fund additional portfolio investments, supporting RAM Income Capital’s strategy to grow and diversify its asset base. This capital raise complements other funding sources like equity issuance or internal cash flow, allowing the company to secure medium-term financing and avoid immediate refinancing pressures.

The announcement confirms that the dividend or distribution policy will remain unchanged following the placement, maintaining existing income commitments to security holders during the capital deployment phase.

ASX Quotation and Secondary Market Trading

The bonds will be quoted on the ASX under the code RAMHA, providing investors with liquidity and transparency for secondary market trading throughout the bonds’ life. RAM Income Capital will comply with ASX Listing Rules, including finalizing issue numbers and confirming quotation after placement completion.

Any resale of these securities within 12 months will adhere to secondary sale provisions under sections 707(3) and 1012C(6) of the Corporations Act via cleansing notices. References to potential cleansing notices under sections 708A(5), 708AA(2)(f), 1012DA(5), or 1012DAA(2)(f) ensure regulatory compliance and facilitate investor exit options post-issuance.

Existing Security Class and Equal Ranking Assurance

The RAMHA bonds are part of an existing security class, indicating prior issuance under this code or a similar structure. This status simplifies ASX administrative processes and offers investor familiarity with the terms.

The newly issued bonds will rank equally with existing securities in the same class, with no subordination or priority differences. All holders will have identical terms, payment schedules, maturity dates, and creditor protections, ensuring a unified security class without dilution of rights.

Regulatory Approvals and Issuance Timeline

RAM Income Capital confirmed no external approvals or additional conditions are required for the placement to proceed unconditionally. This streamlined process reflects the regulatory framework permitting such corporate bond placements without extra governmental or shareholder consents beyond standard ASX notifications.

The proposed issue date is 12 August 2026, allowing approximately 16 days from the announcement date of 27 July 2026 to complete regulatory and administrative tasks. This timeline is typical for institutional bond placements and includes documentation finalization, joint lead manager roadshows, investor subscriptions, and settlement.

No Restricted Securities or Escrow Arrangements

The company confirmed that none of the bonds issued will be classified as restricted securities under ASX Listing Rules, meaning investors will have unrestricted trading rights from issuance, subject only to standard market regulations.

Additionally, no voluntary escrow arrangements apply, allowing bondholders full trading freedom from settlement, enabling them to manage their holdings according to personal investment strategies.

Non-Underwritten Placement and Execution Risk

The bond issue will not be underwritten. Joint lead managers will act on a best-efforts basis, seeking to place the securities without guaranteeing the full AUD 100 million raise. This introduces execution risk depending on investor demand and market conditions.

Non-underwritten placements are common for investment-grade issuers with reputable lead managers in the Australian bond market. The fee structure incentivizes active marketing and investor engagement to maximize capital raised.