GCP Infrastructure unlocks £40 million through solar refinancing as asset disposal programme gathers pace (GCP)

GCP Infrastructure Investments (LSE:GCP) has completed the refinancing of a portfolio of ground-mounted solar photovoltaic assets, introducing approximately £40 million of senior debt to replace what had previously been a fully equity-funded investment. The refinancing, completed using valuations consistent with the company’s 31 March 2026 net asset value, results in a loan-to-enterprise value ratio of around 38% and is expected to release approximately £40 million in cash as part of GCP’s wider capital recycling strategy.

Asset sales support capital recycling strategy

Alongside the refinancing, GCP is progressing a series of infrastructure disposals, including the sale of an anaerobic digestion asset for around £3 million, two onshore wind projects valued at approximately £10 million and a supported social housing portfolio that is expected to repay about £47 million of outstanding loans. The proceeds will primarily be used to reduce the company’s credit facilities, while surplus capital may be allocated to share buybacks or new investment opportunities in line with its capital allocation policy. With the shares continuing to trade at a significant discount to net asset value, regular share repurchases could account for a meaningful proportion of daily trading activity.

Outlook

GCP’s outlook is supported by a conservative balance sheet, improving cash generation and constructive technical market signals. These strengths are partly offset by uneven revenue performance and a relatively demanding price-to-earnings valuation, although the company’s attractive dividend yield, ongoing share buyback programme and disciplined capital management provide additional support.

More about GCP Infrastructure Investments Ltd

GCP Infrastructure Investments Ltd is a FTSE 250-listed, closed-ended investment company focused on delivering long-term, inflation-linked returns through investments in UK infrastructure debt. The portfolio is concentrated on projects backed by public sector or availability-based revenue streams, with a strong emphasis on infrastructure that delivers positive environmental and social outcomes.