SCOTTISH MORTGAGE INVESTMENT TRUST PLC

Legal Entity Identifier: 213800G37DCS3Q9IJM38

Scottish Mortgage Investment Trust PLC raises further US$ 400 million of long-term borrowings

Scottish Mortgage Investment Trust PLC announces that it has raised a further US$ 400 million (c£294 million) in long-term, fixed rate, senior, unsecured private placement notes, denominated in US Dollars. This transaction has provided the Company with further long-term financing at very attractive rates.

As Scottish Mortgage's assets have grown, the Board has increased the absolute level of the borrowings for the Company in order to maintain what it believes to be the appropriate level of gearing of the portfolio. In line with the gearing policy and guidance provided in the Company's Annual Report, the Board remains committed to the strategic use of borrowings for the Company in this way, with the aim of enhancing returns to shareholders over time, in line with Scottish Mortgage's distinctive investment philosophy and disciplined long-term approach.

The new private placement agreement provides for total additional borrowings of US$ 400 million, through the issuance of three notes: one 30-year note for US$ 175 million with a fixed coupon of 2.99%, one 35-year note for US$ 110 million with a fixed coupon of 3.04% and a 40-year note for US$ 115 million with a fixed coupon of 3.09%. All coupons will be payable semi annually. The funding date for all three tranches was 19 January 2022.

Once again, Banco Santander S.A. London acted as the placement agent for the transaction.

Fiona McBain, Chair of Scottish Mortgage, says:

"Once again the Company has issued long-term private placement debt at attractive rates. This is reflective of the enduring strength of Scottish Mortgage's proposition and should enhance shareholders' returns over the coming decades. The Board wishes to thank Baillie Gifford, Santander and others for their diligence and hard work on this."

Stewart Heggie, Investment Specialist for Scottish Mortgage, says:

"At present, competition for capital in the Scottish Mortgage portfolio is intense. Raising fresh capital at this point will allow us to patiently back more transformational growth companies, as well as increasing stakes in companies who are making considerable progress operationally thus expanding the scale of their opportunities.  We possess no competitive advantage in trying to predict short-term market gyrations.  Therefore, no tactical attempt was made to capture recent market swings."

For further information please contact:

Baillie Gifford & Co Limited

Company Secretaries

20 January 2022

Regulated Information Classification: Additional regulated information required to be disclosed under applicable laws and regulation.