28th Jan 2014 08:48
LONDON (Alliance News) - GCP Infrastructure Investments Ltd Tuesday said it has made an investment in the UK's solar power market, after its Master Fund Monday completed a deal subscribing for GBP4.99 million in loan notes with a term of about 20 years.
The yield on the notes will be about 9.3% a year, it said. The notes are being issued by GCP Rooftop Solar 4 Ltd, with the proceeds used to make a loan secured against a portfolio of domestic solar panel installations in England installed by A Shade Greener Ltd.
All the repayments on the loan notes are expected to be serviced from income arising under the UK Government's Feed-In Tariff Scheme for solar power.
Separately, the infrastructure investment fund said that GCP RHI Boiler 2 Ltd had paid back GBP5 million of a GBP11.25 million loan ahead of time. GCP Infrastructure made the loan in April 2013 and the funds were to be used to fund a debt facility to finance the installation of biomass boilers on commercial premises. However, demand had not been as high as hoped for the boilers and so the company decided to pre-pay some of the loan back.
GCP Infrastructure said it expects to reinvest the funds shortly.
GCP Infrastructure shares were flat at 108.5 pence early Tuesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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