Quarterly investor update
23/08/2023 07:00
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RNS Number : 1189K GCP Infrastructure Investments Ltd 23 August 2023
GCP Infrastructure Investments Limited
("GCP Infra" or the "Company")
LEI 213800W64MNATSIV5Z47
Quarterly investor update
23 August 2023
GCP Infra is pleased to announce the publication of its investor report, which
is available at www.gcpinfra.com (http://www.gcpinfra.com) .
At 30 June 2023:
· The net asset value ("NAV") was, as previously announced, 110.02
pence per ordinary share;
· The Company was exposed to a diversified and partially inflation
protected portfolio of 52 investments with an unaudited valuation of £1.1
billion; and
· The portfolio had a weight-adjusted average annualised yield of 7.9%,
principal outstanding of £1.0 billion and an average life of ten years.
In the quarter to 30 June 2023, the Company finalised a refinancing of a
portfolio of biomass projects, which generated net cash proceeds of c.£50.0
million, including associated prepayment fees of c.£11.0 million, which were
received by the Company post period end. The proceeds were used to partially
repay the RCF, reducing the outstanding balance to £104.0 million. This
transaction demonstrates the Company's ability to realise the investment value
of assets (underpinning the Company's NAV) and generate additional income,
providing support to the Company's asset valuations.
Share buyback programme
On 14 March 2023 the Company announced a proactive programme of share buybacks
in response to the persistent discount at which the Company's share price is
trading relative to the published net asset value. The Company remains
committed to pursuing buyback opportunities in line with the strategy that has
been set out previously, and to benefit from the investment opportunity that
the Company's shares offer at the current price. At 30 June 2023, the Company
had bought back 5,935,908 shares.
Proposed combination
On 11 August 2023 the Company ("GCP Infra") announced that it has agreed heads
of terms with the board of GCP Asset Backed Income Fund Limited ("GABI") in
respect of a proposed combination of GCP Infra with GCP Asset Backed (the
"GABI Scheme").
The combination will be effected by way of a contractual scheme of
reconstruction resulting in the solvent winding-up of GABI and the transfer of
its assets to the Company in exchange for the issue of new ordinary shares in
GCP Infra to GABI shareholders. The number of GCP Infra shares issued to GABI
shareholders will be determined on a formula asset value ("FAV") for FAV
basis. The FAVs shall be calculated based on the net asset value of each of
the Company and GABI on an agreed calculation date, less each party's
transaction costs. The GABI Scheme, if completed, is expected to conclude
before the end of 2023.
The Investment Adviser believes that, if completed, the GABI Scheme will bring
benefits to both the existing and any new shareholders in the Company.
Following the completion of the GABI Scheme, it is proposed there will be an
increased return of capital to shareholders and the Company will reduce its
leverage. GCP Infra's investment policy will be amended to maximise access to
attractive investment opportunities, with a focus on sustainable assets. These
mechanisms further support the benefits of the GABI Scheme to shareholders and
further details can be found in the announcement dated 11 August 2023.
The Company is in separate discussions with the board of RM Infrastructure
Income plc ("RMII") with the intention of agreeing a potential combination of
the enlarged GCP Infra with RMII (the "RMII Scheme"). It is expected that this
combination will be effected by way of a scheme of reconstruction of RMII and
the associated transfer of a material proportion of its assets to GCP Infra in
exchange for the issue of new shares in GCP Infra.
For further information, please contact:
Gravis Capital Management Limited +44 (0)20 3405 8500
Philip Kent
Ed Simpson
Max Gilbert
Stifel Nicolaus Europe Limited +44 (0)20 7710 7600
Edward Gibson-Watt
Jonathan Wilkes-Green
Buchanan/Quill +44 (0)20 7466 5000
Helen Tarbet
Sarah Gibbons-Cook
Henry Wilson
Notes to the Editor
About GCP Infra
GCP Infra is a closed-ended investment company and FTSE-250 constituent, its
shares are traded on the main market of the London Stock Exchange. The
Company's objective is to provide shareholders with regular, sustained,
long-term distributions and to preserve capital over the long term by
generating exposure to UK infrastructure debt and related and/or similar
assets.
The Company primarily targets investments in infrastructure projects with long
term, public sector-backed, availability-based revenues. Where possible,
investments are structured to benefit from partial inflation protection. GCP
Infra is advised by Gravis Capital Management Limited.
GCP Infra has been awarded with the London Stock Exchange's Green Economy Mark
in recognition of its contribution to positive environmental outcomes.
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