LAWFUEL – International Legal Announcements – Herbert Smith advises on the launch of LSE listed commodity derivatives fund
Herbert Smith has advised Ceres Agriculture Fund Limited, a newly incorporated Guernsey investment company, on the placing of 134 million shares, valued at US$1 each, on the main market of the London Stock Exchange. The listing raised approximately US$130 million after expenses.
Ceres Agriculture Fund Limited, managed by FourWinds Capital Management, is the first company listed on London’s main market that is dedicated to investing in the skills of discretionary traders using exchange-traded agricultural commodity contracts and derivatives.
Herbert Smith was instructed on this matter following a referral from FourWinds Capital Management with whom the firm has an established relationship.
Louise Freestone and Nigel Farr led for Herbert Smith. Their team comprised Stephen Newby, Tim West and Nick Clayton (corporate); Bradley Phillips, assisted by Sian Jennings (tax); and Adam Wells, assisted by Katie Marchetti (US securities).
Louise Freestone commented:
“This is yet another landmark transaction for our funds team and is the first main list deal we have done since the changes to the Chapter 15 Listing Rule requirements for investment companies came into force. The deal threw up a number of challenges, not least that we needed to learn the meanings of terms like ‘contango’ and ‘backwardation'”
Landsbanki Securities (UK) Limited, acted as sponsor and placing agent and FourWinds Capital Management acted as co-placing agent. Landsbanki Securities (UK) Limited was advised by LG.
