?15.1 Million Investment Commitment

RNS Number : 1631V

GCP Infrastructure Investments Ltd

09 January 2012

 



GCP Infrastructure Investments Limited

(the "Company")

Headline: £15.1 million Investment Commitment

9 January 2012

The Company is a closed-ended investment company that seeks to generate returns from subordinated infrastructure debt and related and/or similar assets (the "Target Assets"). The Company achieves this by investing substantially all of its capital in GCP Infrastructure Fund Limited (the "Master Fund"), an open-ended investment company that holds the Target Assets. The Company is the majority shareholder of the Master Fund. The Company and the Master Fund are advised by Gravis Capital Partners LLP (the "Investment Adviser").

On 19 December 2011 the Company announced that it had successfully raised gross proceeds of £67.4 million, with £63.7 million raised through a placing and offer for subscription of C shares and £3.6 million raised through the arrangements for switching (together the "Issue"). On 22 December 2011, the Company invested £62.3 million in Master Fund C shares.

On 5 October 2011, the Board of Directors of the Company announced that the Master Fund had committed to advance a series of senior loans in an aggregate size of up to c. £15 million secured on a senior basis against the cash flows arising under the UK Government's Feed-In Tariff ("FIT") scheme from a portfolio of up to c. 1,500 domestic solar panel installations in England. As at the date of this announcement, £9 million has been drawn down under this facility.

The Board of Directors of the Company is pleased to announce that on 6 January 2012 the Master Fund committed to advance a further series of loans in an aggregate size of up to £15.1 million (the "Loans"). The Loans formed part of the pipeline of investment opportunities outlined in the Issue prospectus. The Loans will be secured on a senior basis against the cash flows arising under the FIT scheme from a portfolio of up to c. 2,000 domestic solar panel installations in England (the "Transaction").

The Loans are expected to have a term of c.25 years and to generate a return within the target range of the Master Fund whilst benefitting from an element of inflation protection. The drawdown of the Loans is expected to take place at a rate of c. £5 million per month commencing in early January 2012 against a schedule of completed installations. The installations will be effected by A Shade Greener Limited ("ASG"), and the installed equipment will be owned by a single purpose affiliate of ASG (the "Borrower").The Master Fund will make the Loans to Infrastructure Intermediaries No. 3 Limited, a single purpose vehicle established by the Investment Adviser for the purposes of the Transaction, which will on lend the proceeds of the Loans to the Borrower.

Notes to editors:

A Shade Greener Limited is a privately-owned group based in Tankersley, South Yorkshire. ASG developed the free solar panel business model in England, whereby ASG installs solar panels on residential property at no charge to the relevant household; the household is then able to use as much of the energy output of the panels as they are able, while ASG is paid over a 25 year term under the FIT scheme. ASG is the leading supplier and installer of free solar panels in the UK with an estimated 15% market share nationwide  See http://www.ashadegreener.co.uk/ .

The Feed-In Tariff scheme was introduced by the UK Government with effect from April 2010 to encourage the use of energy in the UK from renewable sources (including solar electricity panels). The scheme guarantees to electricity producers a fixed price for electricity produced from renewable sources for a term of 25 years, inflating at RPI.

Contact details:
Gravis Capital Partners LLP
Stephen Ellis	[phone]
Rollo Wright	[phone]
Oriel Securities
Emma Griffin	[phone]
Joe Winkley
Gareth Price
Neil Winward
MHP Communications
Martin Forrest	[phone]

 

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