GCP Infrastructure has completed a transaction subscribing for a loan note to be used to fund biomass plants, with a term of 17 years and a value of up to £62.9m, £36.6m of which was advanced 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 Biomass 5 Limited and the proceeds used to provide a loan secured on a senior basis against a portfolio of 5 anaerobic digestion assets owned by Agrivert Limited, a market leading builder and operator of Anaerobic Digestion plants.
Investment by the Company in each of these projects will remain subject to each receiving government subsidies, either in the form of the Feed-in Tariff (FIT) scheme or Renewable Obligation Certificates (ROCs), which inflate at RPI. The acquisition of the Notes has been financed from a drawing under GCP’s revolving credit facility.
GCP extends funding to biomass plants