LONDON (Alliance News) - GCP Infrastructure Investments Ltd Monday said it will raise up to GBP20 million via a share issue.
GCP said it wants to raise the new financing in order to take advantage of a number of attractive immediate investment opportunities in the market.
The number of shares to be issued and the price of those shares will be determined at the close of the bookbuild for the placing on September 15 and will be announced the following day, the infrastructure investment vehicle said.
The yield on the loan notes when issued will be around 9.0% a year.
GCP also said Monday that it has completed a transaction committing to subscribe loan notes with a term of around 16 years and an aggregate value of GBP8.4 million.
The notes will be issued by GCP Onshore Wind 1 Ltd, a single purpose company, which will use the proceeds to make a loan secured on a senior-ranking basis against a single site, five turbine, 10 megawatt wind farm to be developed in England.
All payments of both principal and interest in relation to the notes are expected to be serviced following commissioning from income arising from the Renewables Obligation Certificates (ROCs) generated by the operation of the wind farm and from the sale of electricity. ROCs are issued by Ofgem.
The acquisition of the notes has been financed fully from available cash reserves.
GCP shares were quoted down 0.8% at 116.07 pence per share Monday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance. Additional reporting by Anthony Tshibangu.
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GCP Infrastructure Investments (GCP)