Rural Funds (ASX:RFF) completes institutional entitlement offer for $30 million

Company News

by Lauren Evans

Rural Funds Group (ASX:RFF) has announced the completion of its institutional entitlement offer, raising $30 million at $2.47 per share on 8 July 2021. RFF is a real estate investment trust that owns a portfolio of agricultural assets.

Rural Funds will now push ahead with the retail component of the entitlement offer to raise approximately $70 million, taking the total size of the entitlement offer to approximately $100 million. The retail entitlement offer will open at 9am on Wednesday, 14 July 2021. Retail unitholders who hold units in RFF as at 7pm on Monday, 12 July 2021 and have a registered address in Australia or New Zealand will be invited to participate at the same price and ratio as the participants in the institutional entitlement offer, being $2.47 and 1 for 8.4.

The purpose of the equity raising is to provide capital for the development of 1,000 ha of macadamia orchards, the acquisition of cattle properties to be leased to corporate lessees and the acquisition of up to 8,338 ML of water entitlements for $38.4 million, which are leased to a private farming company for five years. The equity raising is fully underwritten by UBS AG, Australia Branch, Bell Potter Securities and Wilsons Corporate Finance.

Shares in Rural Funds Group (ASX:RFF) are trading 1.54 per cent lower at $2.56.

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