Full steam ahead for GCP Project Finance share placement

Added 18th May 2016

GCP is looking to continue to capitalise on the banking sector’s reluctance to lend 10-year money, with a new capital raising for Project Finance Investments Limited.

Full steam ahead for GCP Project Finance share placement

The closed-ended fund is looking to raise between £60m and £106m through the issue of 100m C class shares. Once the money has been 90% invested, which GCP expects to happen within the next four to six months, the C class shares will be converted into ordinary shares, taking the total number of ordinary shares in issue to 200m.

According to GCP partner Rollo Wright, the firm’s pipeline of potential investments is strong, with most investments offering a yield of around 8% and a term of around 10 years.

“GCP Infrastructure arose as a result of the banks fleeing from the very long dated banking sector. But, there remain plenty of other areas of the market that are poorly served by the banks.” he said, pointing to the rapid growth of the alternative lending space as proof.

“Banks are big beasts, they tend to have strict and rigid lending criteria and they can be challenging to work with. And, at the moment they are most comfortable lending two-year, three-year, maybe five-year money, so a 10-year term is not something they are terribly interested in.”

As a result of this, there is a clear space for an entity like Project Finance that targets UK projects where it can get security over either hard assets like buildings or contracted cashflows, like long dated leases.

And, said Wright, there is recurring interest: “Over half our pipeline is full of projects from people we have lent to before,” which he adds, helps GCP from a risk mitigation point of view.

At present the portfolio is 26% exposed to Asset finance, 26% to energy and infrastructure projects and 48% to property. And, Wright said, given the current pipeline, once the new money is fully invested, the make-up of the fund will look pretty similar.

The open offer for shares closes on 19 May, the placing and offer for subscription closes on 23 May, with the new shares expected to be admitted to the exchange on 31 May.

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Lazard Emerging Markets
Lazard Emerging Markets

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Geoff Candy

Group digital editor

Geoff Candy joined Portfolio Adviser as News Editor in May 2014. He has been a financial journalist and broadcaster since 2005 and, in that time has worked in both South Africa and the Netherlands, covering everything from high street retailers and construction companies to mining and insurance.



Investment Strategy




PA Channel Island 2016
PA Channel Island 2016

8th November 2016
The Royal Yacht, Jersey


17th November 2016
The Andaz

PA Emerging Markets 2016
PA Emerging Markets 2016

1st December 2016
The Mayfair, London

Sponsored Content

Investment Strategy