REG - GCP Infra Inv Ltd - Investor Report at 31 March 2024

GCP Infrastructure InvestmentsAnnouncement

08/05/2024 07:00

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RNS Number : 5101N  GCP Infrastructure Investments Ltd  08 May 2024

GCP Infrastructure Investments Limited

("GCP Infra" or the "Company")

LEI 213800W64MNATSIV5Z47

 

Quarterly investor update

 

8 May 2024

 

GCP Infra is pleased to announce the publication of its investor report, which
is available at www.gcpinfra.com (http://www.gcpinfra.com) .

 

At 31 March 2024:

 

·    The net asset value was, as previously announced, 107.62 pence per
ordinary share;

·   The Company was exposed to a diversified and partially inflation
protected portfolio of 51 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 net cash proceeds will be used to repay the Company's revolving credit
facility. Following such repayment, the Company's net debt position is
expected to be c.£45 million. Further, the disposal has reduced the Company's
exposure to merchant electricity prices and equity-like interests.

 

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             +44 (0)20 3405 8500

 Philip Kent

 Ed Simpson

 Max Gilbert

 RBC Capital Markets                           +44 (0)20 7653 4000

 Matthew Coakes

 Elizabeth Evans

 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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