Debt-focused GCP Infrastructure Investments has raised £80 million (€96 million; $133 million) via a C share issue on the London Stock Exchange.
The issue was described by the fund as “significantly oversubscribed”, with proceeds limited to £80 million to match near-term lending opportunities. GCP’s initial target for this fundraising was £75 million, up to a maximum of £100 million.
The C Shares, which will start trading on 18 March, are due to convert when 90 percent of total net assets are invested or within six months. This will increase the total market capitalisation of the fund to £467 million.
GCP currently manages a portfolio of 32 infrastructure loans primarily attached to Private Finance Initiative (PFI) projects and renewable energy in the UK.
At the end of last year 42 percent of the portfolio was invested in PFI, 22 percent in rooftop solar, 12 percent in biomass projects, 11 percent onshore wind, 9 percent in anaerobic digestion, and 4 percent in commercial solar. Around 55 percent of these were senior loans, with the remainder made up of 37 percent subordinated loans and 8 percent senior loan guarantees.
This initial capital raise could be followed by the placing of up to £100 million of ordinary shares, a programme the firm announced in late January. GCP can issue the shares until 11 February 2015.
The fund currently trades at 109p per share, a 7.2 percent premium to its net asset value (NAV) at 28 February.