10 March 2014 News

Blue Capital reveals details of third placement

Blue Capital Management, the third-party capital management arm of Montpelier Re, has revealed details of its timetable for its third placing of new shares under the terms of the Placing Programme it launched last April.

The last date for commitments for its listed Blue Capital Global Reinsurance Fund can be received will be on March 25 while the results will be announced a day later.

The new shares issued will rank equally with the existing ordinary shares of the fund. Their placing price will be at a premium to the net asset value of the fund as at February 28, 2014, after adjustments for placing costs.

Proceeds will be invested in fully collateralised reinsurance contracts and other insurance linked investments. The majority of the net proceeds raised are expected to be invested in catastrophe reinsurance contracts at the June and July reinsurance renewals.

The fund achieved a total net asset value return including dividends to investors of 11.8% in 2013. The target return for the Blue Capital Global Reinsurance Fund is LIBOR plus 6% per annum on the original issue price of its shares and a net return to its shareholders of LIBOR plus 10% per annum, net of fees.

The company's Ordinary Shares were admitted to trading on the London Stock Exchange's Specialist Fund Market and were listed on the Bermuda Stock Exchange with a secondary listing on 6 December 2012, raising $100.1 million. The company subsequently raised $52.3 million pursuant to the First Closing under the Placing Programme in May 2013 and $23 million pursuant to the Second Placing.

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