Project Finance Investments has been announcing a series of deals as it deploys the money it raised in its IPO. All of the investments are made through Loan Notes issued by Project Finance Investments (UK) Limited, a wholly owned subsidiary of the Company.
On 5 November it said it had committed to subscribe for a loan note with a term of c.7 years in an amount of up to c. £20.2m, of which c. £8m is subscribed for immediately with the remainder expected to be subscribed for over the next 4 months. The yield on the Loan Note is c. 7.6% per annum, payable quarterly in arrears. The proceeds of the Loan Note issue will be used to provide asset backed finance (the “Bridging Co Loans”) to a series of specialist lenders active in the UK short term finance market. The Bridging Co Loans will be secured by way of a series of first ranking charges against primarily residential property, all of which will be in the UK.
On 3 November it subscribed for loan notes with a term of c.15 years and a value of £10.7m. The yield on the Loan Note is c. 7.8% per annum, payable quarterly in arrears. The proceeds of the Loan Note were used to provide project finance (the “O&M Co Loan”) to an operations and maintenance company active in the UK renewable energy market (the “O&M Co”). The O&M Co Loan is secured on a senior basis against the receivables of O&M Co under 27 underlying contracts governing the operation and maintenance of renewable energy installations (the “O&M Contracts”).
On 30 October it announced it had subscribed for loan notes with a term of c.10 years and a value of c. £16m. The yield on the Loan Note is c. 7.8% per annum, payable quarterly in arrears. The proceeds of the Loan Note were used to provide project finance (the “Finance Loan”) to a provider of energy efficient domestic boiler systems in the UK (the “Boiler Co”). The Finance Loan is secured on a senior basis against the receivables of Boiler Co under c. 8,000 contracts governing the payments made to Boiler Co in return for the provision, installation and servicing of boilers (the “Boiler Contracts”). The Finance Loan is further secured against the underlying boilers themselves.
PROJ : Project Finance deploying capital