Lawrence Graham's investment funds team has acted on the issue of zero dividend preference shares ("ZDPs") by The Conygar Investment Company PLC ("Conygar") and Vinaland Limited ("Vinaland").  In each case the issues involved the formation of a new wholly owned subsidiary of the client (that issued the ZDPs) and the publication of a prospectus by the subsidiary in conjunction with the admission of the ZDPs to the Official List (by way of a standard listing) of the London Stock Exchange.

ZDPs are a class of share capital which enjoy a fixed capital return at a future date but in the meantime do not entitle the holders to any income or dividend returns.

In the case of Conygar, its subsidiary Conygar ZDP PLC raised £30 million by the placing of ZDPs carried out by Liberum Capital Limited.  In the case of Vinaland, its subsidiary Vinaland ZDP Ltd raised £15 million by way of a placing carried out by Edmond de Rothschild Securities (UK) Limited and an offer for subscription.

The Lawrence Graham team advising Conygar was led by corporate partner Nick Heather, assisted by corporate assistants Kris Rogers and Sam Lester.  The team advising Vinaland was led by corporate partner John Reed, assisted by Alice Prickett.  In both cases, tax advice was provided by tax partner Elliot Weston, assisted by Kate Worthington.

Commenting on the transactions, Nick Heather said: "ZDPs are an interesting finance option for real estate companies such as Conygar and Vinaland.  They provide a long term finance option that is unsecured and covenant light.  On the other side of the coin, and given the low interest rate environment, private client investors find ZDPs particularly attractive".