GCP Infrastructure – funding for Green Investment Bank

GCP Infrastructure – funding for Green Investment Bank – The Board of GCP Infrastructure  notes the announcement by Macquarie Group today in respect of its acquisition of the UK Green Investment Bank.

The Board confirms that the company has entered into a conditional, binding commitment with a Macquarie-owned entity to subscribe for a series of loan notes with a value of up to c. GBP140 million, in aggregate, over a c. two year period. The proceeds of the GIB Loan Notes, if issued, will be used to purchase and/or finance investments secured against 23 UK based projects connected to the GIB Transaction.

Each of the Projects is in receipt of, or is expected to be in receipt of, revenues arising from either government-backed public-private partnership (“PPP”) schemes or government-sponsored mechanisms for promoting energy efficiency or renewable electricity generation in the UK.  The Projects involve developments across multiple sectors including waste to energy, onshore wind, hydro, landfill gas and building retrofit schemes.

This commitment by the company extends the existing relationship with the UK Green Investment Bank, which has seen it invest alongside the GIB in a number of projects over the last four years. GCP Infrastructure intends to continue to work with the GIB, under Macquarie’s ownership, to ensure the long-term success of the projects and to explore further opportunities in sectors of the green economy relevant to its investment mandate.

The conditional investment is subject, inter alia, to regulatory approval of the GIB Transaction. The GIB Transaction is currently expected to complete in the first half of 2017.  The acquisition of the GIB Loan Notes, if issued, will be funded from available resources at the relevant time. A further announcement will be made in due course.

Update 18 August 2017

The Board of GCP Infrastructure notes the announcement by Macquarie today confirming the completion of the GIB Transaction. Accordingly, the company is pleased to announce that, in accordance with the Commitment, it intends to subscribe for a series of loan notes with a value of c. GBP140 million over a c. two year period. Approximately GBP90 million will be advanced in the coming days, with expected terms of between c.13 and 25 years.

The Loan Notes will be used to finance the purchase of, and ongoing commitments related to, investments secured against 23 UK based projects across multiple sectors including waste to energy, onshore wind, hydro, landfill gas and building retrofit schemes. Each of the projects is in receipt of, or is expected to be in receipt of, revenues arising from either government-backed public-private partnership (“PPP”) schemes or government-sponsored mechanisms for promoting energy efficiency or renewable electricity generation in the UK.

The Loan Notes will be issued by GCP Bridge Holdings Limited, an intermediary company set up for these purposes. The acquisition of the Loan Notes has been financed from available resources.

GCP : GCP Infrastructure – funding for Green Investment Bank