GCP Infrastructure Investments refinances renewable portfolio

Gravis Capital Partners (GCP) Infrastructure Investments has completed a transaction subscribing for a loan note with a term of c.19 years and a value of up to £45 million (US$70.3 million).

The company, the UK’s only listed infrastructure fund focused primarily on investments in UK infrastructure debt, will advance c. £19 million at completion and the remainder is expected to be drawn down over the next few months subject to various conditions.

The loan note will be issued by GCP Green Energy Limited and the proceeds used to provide a loan secured on a senior basis against a portfolio of solar and wind assets owned by Good Energy Generation Assets Limited, a wholly owned subsidiary of Good Energy Group plc.

The portfolio of solar and wind assets receive 20 year government subsidies, either in the form of the Feed-in Tariff (FIT) scheme or Renewable Obligation Certificates (ROCs), which inflate at RPI.

All payments of both principal and interest in relation to the loan note are expected to be serviced from income arising from the ROC and FIT cash flows generated by the operation of the portfolio of solar and wind assets and from the sale of electricity.

The acquisition of the loan note has been financed fully from available cash reserves within GCP Infrastructure Investments.