Infra debt momentum prompts GCP fundraise

The UK fund manager is seeking fresh liquidity to help it grow its £655m PFI and renewables loan book, which is up nearly 40% on last year.

Gravis Capital Partners (GCP) intends to raise £20 million (€28.4 million; $30 million) for its Infrastructure Fund (GCP Infrastructure) through a placing on the London Stock Exchange.

The shares will be issued at 118p, a 2.5 percent discount to Friday’s closing price and an 11 percent premium to the vehicle’s net asset value (NAV) at 30 October. The offer is part of a placing programme announced last March under which the firm can still issue 89 million shares.

The news comes on the back of a strong growth in GCP’s infrastructure loan book, which increased from £479.8 million at 31 January to £655.1 million at 30 October.

GCP Infrastructure lends to renewable and Private Finance Initiative (PFI) assets. Its portfolio comprises about two-thirds of senior debt and one-third of subordinated loans, in sectors including rooftop solar (29 percent), PFI projects (25 percent), biomass (16 percent), onshore wind (10 percent), anaerobic digestion (9 percent), commercial solar (5 percent) and hydro (3 percent).

Earlier this month. GCP Infrastructure committed £25.5 million through a 35-year loan note to social housing projects in the UK, funded by its cash resources. In August, it plugged £62.9 million into Agrivert, an organic waste management business, through a loan note secured by five anaerobic digestion assets.

If fully subscribed, the placing will increase GCP Infrastructure’s market capitalisation by about 3 percent. Results will be announced on 7 December, with new shares starting trading on 9 December.