Project Finance Investments gets off to good start

Project Finance Investments (soon to be renamed as GCP Asset Backed Income Fund Ltd) has published its first set of figures since listing (covering the period from 7 September 2015 to 30 June 2016). At the end of the period the NAV per ordinary share was 99.47 pence and the NAV per C share was 97.62 pence. The ordinary shares were trading at a 4.8% premium to NAV as at 30 June 2016

GBP106 million was raised at IPO in October 2015 and, as they deployed the IPO proceeds faster than they had anticipated, they brought forward the first dividend by three months and increased the first year target dividend from 4.0 pence to 5.0 pence per share. The fund expanded in May 2006, raising GBP44 million raised through issuance of C shares.

At the period end Project Finance Investments had a diversified portfolio of nine asset backed loans with a fair value of GBP112.7 million. A further GBP13.5 million of loans were advanced post period end. The investment manager is currently reviewing investment opportunities totalling in excess of GBP70 million across the fund’s target sectors.

The results show a profit for the period of GBP3.1 million. Dividends of 1.32 pence per share were paid for the period from IPO to 31 March 2016 and 1.50 pence per share for the quarter to 30 June 2016, declared on 20 July 2016. The dividend target in respect of the financial year ending 31 December 2017 is 6%, with a target IRR of between 7% and 8% (on the IPO issue price) over the long term.

PROJ : Project Finance Investments gets off to good start