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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