Abrdn Asia-Pacific Income Fund Announces Series B Preferred Shares Issuance

On October 3, 2024, Abrdn Asia-Pacific Income Fund, Inc., a closed-end fund listed on NYSE MKT as FAX, announced the completion of a private offering of 4 million Series B Mandatory Redeemable Preferred Shares due in 2029. These shares, valued at $100 million, hold an AA- rating from Kroll Bond Rating Agency. The proceeds will be directed towards investment opportunities, debt refinancing, or other general purposes as allowed by regulatory guidelines.

The fund employs a strategic leverage approach, enhancing income through favorable interest rate differentials. Current leverage includes a $100 million revolving credit facility maturing in 2025 and several senior secured notes rated AAA. The Fund believes in the sustained viability of its fixed income investments in the Asia-Pacific region.

The newly issued Series B MRPS are not registered under the Securities Act of 1933, implying restrictions on transfer within the United States. Abrdn operates under various affiliated investment advisers and cautions that no assurance is provided on achieving investment objectives.