Toronto-based Scotia Managed Companies Administration Inc. said Friday that Moneda LatAm Growth Fund has completed a domestic initial public offering for gross proceeds of $32 million.
Class A units of the fund are listed and posted for trading under the symbol on the Toronto Stock Exchange (TSX:MLE.UN).
The closed-end fund invests in a diversified portfolio mainly consisting of publicly listed equity securities, and including up to 20% in fixed income securities, of companies in Latin America.
The portfolio will be actively managed by Chile-based Moneda International Inc. Moneda expects the fund to benefit from the consumer, industrial and financial services growth in Latin America, with an initial focus on Brazil, Chile, Colombia, Mexico and Peru.
The fund has established a distribution policy to pay quarterly cash distributions approximately equal to one-quarter of 3% of net asset value (NAV), provided the NAV following such distribution would still be in excess of $10 per unit.
The syndicate of agents for the Offering was co-led by Scotiabank, CIBC and RBC Capital Markets and includes BMO Capital Markets, National Bank Financial Inc., TD Securities Inc., Canaccord Genuity Corp., GMP Securities L.P., Macquarie Private Wealth Inc., Raymond James Ltd., Burgeonvest Bick Securities Limited, Dundee Securities Ltd. and Manulife Securities Inc.
The Fund has granted the Agents (as defined below) an over-allotment option to offer up to 15% additional Class A units at $10 per unit exercisable at any time during the next 30 days.