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New fund targets 7% yield from Middle Eastern infrastructure

New fund targets 7% yield from Middle Eastern infrastructure

An investment trust focused on infrastructure projects in the Middle East is to launch in December.

The GCP Sovereign Infrastructure Debt fund, run out of boutique Gravis Capital Partners, is aiming to raise $250 million (£156 million).  

It will use the proceeds to invest in infrastructure debt secured against major operational infrastructure projects in the Gulf Cooperation Council region, which includes Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait and Oman.

The debt will primarily be on floating rates linked to the three-month US dollar Libor, with sovereign-backed cash flows.

Once fully invested, the trust will target an annualised dividend yield of the higher of the three-month US dollar Libor plus 6-7% or a flat 7%.

For its first financial period, ending 31 December 2014, the trust will aim for an annualised dividend yield of 5%.

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