GCP Sovereign Infrastructure Debt Interim Management Statement (2659H)
May 15 2014 - 11:26AM
UK Regulatory
TIDMGULF
RNS Number : 2659H
GCP Sovereign Infrastructure Debt
15 May 2014
15 May 2014
GCP Sovereign Infrastructure Debt Limited
Interim Management Statement
GCP Sovereign Infrastructure Debt Limited (the "Company"), the
listed infrastructure investment company, is issuing this Interim
Management Statement in accordance with FCA Disclosure and
Transparency Rule 4.3. This statement relates to the period from 19
December 2013 to 15 May 2014.
The Company seeks to invest in subordinated infrastructure debt
secured against infrastructure projects located in Bahrain, Kuwait,
Oman, Qatar, Saudi Arabia and the United Arab Emirates (together
the "GCC Region"). The Company primarily seeks exposure to
operational projects whose revenue streams are sovereign-backed and
do not predominantly depend on the level of use of the underlying
assets.
The Company primarily seeks exposure to floating rate loans,
issued in US Dollars, where the coupon received will vary with, and
is periodically adjusted to reflect changes in, a generally
recognised base interest rate, which is expected to be primarily
three month USD Libor.
Highlights
-- The Company was admitted to trading on the Specialist Fund
Market on 19 December 2013 ("Admission"), raising USD 125 million
through a placing and offer for subscription.
-- The Company's Investment Adviser is Gravis Capital Partners
LLP ("GCP"). GCP has appointed Exotix Partners LLP ("Exotix") to
identify and originate investment opportunities for the
Company.
Trading update
GCP has advised the Board that substantive agreement has now
been reached with infrastructure borrowers in the GCC ("Borrowers")
in relation to four subordinated debt transactions in a total size
of c. USD 100 million (the "Transactions"), on which formal
documentation has commenced and which are thus expected to complete
in the near term. Progress with the Transactions has, however,
taken longer than anticipated, primarily due to the relative lack
of familiarity of the Borrowers or their advisers with capital
structures which include subordinated debt tranches. Negotiations
on a range of other subordinated debt transactions are
continuing.
In the Prospectus published on 20 November 2013, the Directors
indicated, on advice from GCP and Exotix, that the Company expected
to be fully invested within four to six months of Admission, with
an initial target dividend yield in respect of its first financial
period to 31 December 2014 of 5 per cent (the "Initial Dividend
Target").
GCP has advised the Board that it now believes that the Company
is likely to be in a position to deliver a dividend of between 3
and 4 per cent for its first financial period to 31 December 2014,
rather than the Initial Dividend Target of 5 per cent, due to the
delay in achieving full investment. GCP has advised the Board that
it expects the Company to declare its first dividend in October
2014 to be paid in November 2014.
The target annualised dividend yield of the Company thereafter,
of the higher of (i) USD Libor plus 6 to 7 per cent and (ii) 7 per
cent, remains unchanged.
Enquiries
Gravis Capital Partners LLP +44 (0) 20 7518 1490
Stephen Ellis
Rollo Wright
Cenkos Securities +44 (0) 20 7397 8900
Dion Di Miceli
Tom Scrivens
Gravis Capital Partners LLP
Gravis Capital Partners LLP is the Investment Adviser to the
Company. GCP is an infrastructure investment advisory
specialist.
GCP is authorised and regulated by the Financial Conduct
Authority.
Exotix Partners LLP
Exotix Partners LLP has been appointed by GCP as the Asset
Adviser to identify and originate potential investments for the
Company. Exotix is authorised and regulated by the Financial
Conduct Authority.
Exotix is an expert in illiquid, emerging and frontier markets
and investment banking. Established in 1999, with offices in
London, New York and Dubai, Exotix advises on illiquid bonds and
loans, equities, structured finance, asset management, research and
capital raising in frontier markets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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