GCP
Infrastructure Investments Limited
("GCP Infra"
or the "Company")
LEI
213800W64MNATSIV5Z47
Quarterly investor
update
9 August
2024
GCP Infra is pleased to announce the
publication of its investor report, which is available at
www.gcpinfra.com.
At 30 June 2024:
● The net asset value was,
as previously announced, 107.58 pence per ordinary
share;
●
The Company was exposed to a
diversified and partially inflation protected portfolio of
49
investments with an unaudited
valuation of £1.0 billion; and
●
The
portfolio had a weight-adjusted average annualised yield of 7.8%,
principal
outstanding of £1.0 billion and an
average life of ten years.
On 26 April 2024, the Company
disposed of its interest in loan notes secured against Blackcraig
Wind Farm. The disposal occurred at a 6.4% premium to valuation at
31 March 2024, and generated net cash proceeds of c.£31 million.
The disposal has reduced the Company's exposure to merchant
electricity prices and equity-like interests. The net cash proceeds
were used to repay the Company's revolving credit facility, which
at 30 June 2024 resulted in a net debt position of £51.3 million
(31 March 2024: £78.3 million).
Capital allocation
The Board of Directors of the
Company adopted a capital allocation policy as part of the
Company's 2023 Annual Report and Accounts, reconfirming its
intentions to prioritise a material reduction in leverage, as well
as reducing equity-like exposures and exposures in certain sectors,
and facilitating the return of capital to shareholders. The Board
set a conditional target of releasing £150 million (c. 15% of the
portfolio) from disposals or refinancings, to materially reduce
leverage and return at least £50 million to shareholders before the
end of the calendar year 2024.
The disposal detailed above
represents a positive first step in facilitating the Company's
execution on its capital allocation policy, materially reducing
leverage while decreasing equity-like exposure across the
portfolio. The Board and the Investment Adviser continue to focus
on additional opportunities for refinancings or disposals within
the portfolio, in order to achieve the targets set out in the
capital allocation policy.
For further information, please
contact:
|
Gravis Capital Management Limited
Philip Kent
Max Gilbert
Cameron Gardner
|
+44 (0)20
3405 8500
|
|
RBC Capital Markets
Matthew Coakes
Elizabeth Evans
|
+44 (0)20
7653 4000
|
|
|
|
|
Stifel Nicolaus Europe Limited
Edward Gibson-Watt
Jonathan Wilkes-Green
|
+44 (0)20
7710 7600
|
|
Buchanan/Quill
Helen Tarbet
Sarah Gibbons-Cook
Henry Wilson
|
+44 (0)20
7466 5000
|
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.