GCP Infrastructure Investments Limited (LON:GCP) has announced the completion of the introduction of third-party debt financing to a portfolio of ground-mounted solar photovoltaic projects in which it is invested. The transaction will generate total cash proceeds of c. £40m for the company.
The debt financing of the solar portfolio has introduced c. £40m of senior loans against a portfolio in which GCP Infra previously had an entirely equity-like exposure, representing a loan to enterprise value of c. 38%. The transaction recycles the company’s capital at a valuation materially in line with the valuation of the applicable solar assets in the published 31 March 2026 net asset value.
In line with the company’s stated strategy, the Investment Adviser is working on a pipeline of disposals. In the short term the company is progressing:
– The sale of an anaerobic digestion project for proceeds of c. £3m that is expected to complete imminently;
– The disposal of two onshore wind projects for proceeds of c. £10m, which is expected to complete in mid-July; and
– Following the previously announced exchange, the completion of the supported social housing disposal that will repay c. £47m of loans. This is currently expected to complete during summer.
Further announcements on progress of the disposals will be made in due course.
Use of proceeds
The proceeds from the transaction, and any subsequent disposals that complete, will be applied: (i) against amounts outstanding under the company’s credit arrangements; and (ii) in line with the company’s capital allocation framework first set out at the company’s capital markets day (the “Framework”).
The Framework sets out the ongoing objective of accelerating the return of capital through disposals and refinancing of the company’s portfolio, with the use of this capital dependent on the prevailing relationship between the company’s share price and company’s most recently published net asset value per ordinary share. At a share price discount to net asset value per share of greater than 15%, the company will continue to return capital by way of buy backs. At discounts lower than this level, the company will balance the use of the company’s capital across buybacks and attractive investment opportunities.
A buy-back of the company’s shares (the “Shares”) on any trading day may represent a significant proportion of the daily trading volume in the Shares on the London Stock Exchange (and could exceed the 25% limit of the average daily trading volume as referred to in the Commission Delegated Regulation (EU) No. 2016/1052 on buy-back programmes). Share buy-backs will be made pursuant to the authority granted to the company at its Annual General Meeting held on 12 February 2026.
