The loan notes will be issued by GCP Biomass 3 Ltd, a single-purpose company, with the proceeds used to make a senior loan secured against cash flows arising from two operational gas-to-grid anaerobic digestion schemes in England.
Payments of both the principal and interest in relation to the notes are expected to be serviced by GCP Biomass 3 from income from the UK government's Renewable Heat Incentive Scheme and the sale of gas.
GCP Infrastructure funded its acquisition of the notes from available cash resources. Following this investment, GCP said that 44% of the C share capital it raised in March will have been invested. GCP is advised by Gravis Capital Partners LLP.
GCP Infrastructure Investments Limited is a closed-ended investment company that focuses on subordinated debt. The company is a feeder fund and invest substantially all its net proceeds in the Master Fund, an open-ended investment company that is regulated in Jersey.
The Master Fund’s portfolio include subordinated loans to Grosvenor PFI Holdings Ltd in relation to South Essex Partnership NHS Trust Project, County Durham Primary Care Trust Project and Mid Essex Primary Care Trust Project.x