GCP Infrastructure Investments has raised GBP40m at a price of GBP1.00 per ordinary share through the placing, the offer for subscription and the arrangements for switching.
The company has applied for admission of 40,000,000 ordinary shares to trading on the Official List and to trading on the London Stock Exchange’s main market for listed securities, which is expected to take place on 22 July 2010.
Oriel Securities is acting as financial adviser, sponsor and bookrunner.
Stephen Ellis, managing partner of Gravis Capital Partners, says: "In spite of difficult market conditions, the quality of our concept (the targeted provision of debt to Private Finance Initiative projects) and, in particular, the projected eight per cent net yield and inflation protection, appealed to our core target investors among institutions and private client stockbrokers, and allowed us to achieve a successful close.
“The future growth prospects for the sector remain buoyant – despite the current review of some areas of government spending on new projects, the Private Finance Initiative remains a key mechanism for central and local government commitments to deliver social infrastructure efficiently."
GCP Infrastructure Investments is a Jersey incorporated closed ended investment company. It is a feeder fund and will invest substantially all of the net proceeds of the issue in GCP Infrastructure Fund pursuant to a subscription agreement.
The master fund has an existing portfolio of investments with a principal value of approximately GBP31m. The fund will use the proceeds of the subscription to make further investments primarily in subordinated debt instruments issued by operational UK PFI infrastructure project companies and related and/or similar assets.