First Sentinel Plc (AQSE:FSEN) said it has established a wholly-owned subsidiary to deploys the proceeds of the funds raised via green finance preference shares and implement the green finance investment strategy.
This newly established subsidiary, called New Leaf Capital Limited, has an investment objective to generate an attractive total return for investors as well as providing an ethical investment option, principally through providing growth capital to public and private companies with a specific focus on ethical, sustainable and environmental sectors.
The company, which is effectively a mini-investment bank for small- and medium-sized businesses through supply chain finance and invoice purchasing, in late 2018 first announced plans to issue up to £7mln-worth of green preference shares, each consisting of a financial instrument that combines loan notes with denomination of £0.99 with preference shares of £0.01 each.
Today First Sentinel said it has redeemed another 2,000 green preference shares, comprising 1,980 loan notes and 20 preference shares, bringing the total preference shares in issue to 394,000.