HICL Infrastructure Company Ld Acquisition of a new investment (6620J)
September 13 2016 - 3:30AM
UK Regulatory
TIDMHICL
RNS Number : 6620J
HICL Infrastructure Company Ld
13 September 2016
13 September 2016
HICL Infrastructure Company Limited
Acquisition of a new investment
HICL Infrastructure Company Limited, the listed infrastructure
investment company advised by InfraRed Capital Partners Limited, is
pleased to announce the purchase of a proportion of the Road
Management Services (A13) PLC Index-Linked Guaranteed Secured Bonds
2028 (the "Bonds") for GBP50.1m. The Bonds were issued in 2000 to
finance the A13 Thames Gateway PFI Project (the "Project") and have
the benefit of an unconditional and irrevocable financial guarantee
from the monoline MBIA UK in respect of all payments of interest
and principal.
The Bonds are repayable in 2028. As a senior secured debt
investment, with direct RPI-linkage, they are expected to deliver a
total return of circa.7%.
The Project is a GBP220m 30-year PFI concession to design,
build, finance and operate a 20km section of the A13 road between
Limehouse, London and Wennington, Essex on behalf of Transport for
London ("TfL"). The project forms part of TfL's policy to improve
transport links and access throughout East London along an axis
from the M25 to the City of London. The design reflects an
integrated transport strategy, focusing on greater use of public
transport, cycling and walking as well as reducing accidents and
congestion.
The consideration paid by the HICL Group for the investment was
funded through a combination of existing cash resources and a
drawing on the Group's dedicated revolving credit facility.
Following the purchase of the Bonds, the Group has a net current
funding requirement of approximately GBP76m which is due to
increase to GBP148m once the conditional investment in the A63 is
acquired in Q1 2017.
Tony Roper, Director, InfraRed Capital Partners Ltd said "We are
pleased to have secured this investment via a relationship of ours.
Most senior debt investments do not offer the appropriate balance
of return, duration and inflation linkage, but when they do, we
will consider them for the Group."
-ends-
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800
Tony Roper
Keith Pickard
Harry Seekings
Tulchan Communications +44 (0) 20 7353 4200
David Allchurch
Latika Shah
Canaccord Genuity Limited +44 (0) 20 7523 8000
Dominic Waters
Neil Brierley
Will Barnett
David Yovichic
HICL Infrastructure Company Limited
HICL Infrastructure Company Limited ("HICL" or the "Company",
and together with its subsidiaries the "HICL Group") is a long term
investor in infrastructure projects which are predominantly in
their operating phase and yielding steady returns. It was the first
infrastructure investment company to be listed on the London Stock
Exchange. With a current portfolio of 107 social and transportation
infrastructure investments (and one conditional investment) in
projects with predominantly availability-based income streams, it
is seeking further suitable investment opportunities which fit its
stated Investment Strategy.
Further details can be found on the HICL website,
www.hicl.com.
Investment Adviser
The Investment Adviser to HICL is InfraRed Capital Partners
Limited ("InfraRed") which has successfully invested in over 160
infrastructure projects since 1997. InfraRed is a leading
international investment manager focused on infrastructure and real
estate. It operates worldwide from offices in London, Hong Kong,
New York, Paris, Seoul and Sydney. With over 120 professionals it
manages in excess of USD 9bn of equity capital in multiple private
and listed funds, primarily for institutional investors across the
globe. InfraRed is authorised and regulated by the Financial
Conduct Authority.
The infrastructure investment team at InfraRed consists of 60
investment professionals, all with an infrastructure investment
background and a broad range of relevant skills, including private
equity, structured finance, construction, renewable energy and
facilities management.
Further details can be found on InfraRed's website,
www.ircp.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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