GCP Infrastructure Investments waiting on Chancellor's PF2 pipeline
GCP Infrastructure Investments continued to see a steady increase in its net asset value as the infrastructure investor and the wider industry continued to wait for further details on the government's Private Finance 2 initiative.
At the half-year stage the company, which invests in debt to finance publicly-backed infrastructure projects, reported a 0.6% rise in its NAV to 110.30p.
That saw its total returns for the period increase by 0.8%, boosting the tally for total shareholder returns since it floated in 2010 to 95.7%.
Nonetheless, the company was at pains to find opportunities to invest during the period, as it waited on the Chancellor to announce the "long-awaited" PF2 pipeline.
"The considerable volume of capital entering our sector, not just from listed investment companies but also from direct institutional investors and private funds, means that the infrastructure market continues to be highly competitive. Deal flow on the other hand remains sporadic and somewhat unpredictable.
"Whereas the Chancellor expounded at some length in the November 2016 Autumn Statement as to the benefits of infrastructure spending, he was far less forthcoming in his Budget speech in March 2017. The long awaited PF2 pipeline, alluded to briefly in January 2017, is now expected to be announced sometime during the first half of this year. The industry awaits with moderate hope," the company said in a statement.
During the reporting period, GCP raised a further £90m via a rights issue and advanced loans worth £74m.
The latter were secured against UK renewable energy, social housing and PFI projects, with a further £21.8m advanced post period end.
Since the end of its half-year the company had also agreed to buy up to £140m and committed itself to provide up to another £40m to finance supported living housing units.