HICL's NAV rises 2% in third quarter

Feb 10, 2012

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HICL, the FTSE 250 infrastructure investment firm, saw its net asset value improve from 111.5p per share to 114p over the third quarter, after making £162.4m in new private finance initiative (PFI) investments since the end of September.

In December, the firm bought investments in 26 PFI/PPP projects from two infrastructure funds managed by Barclays Infrastructure Funds Management Limited for £143.4m, while £19m was spent in November on an additional stake in an existing project.

HICL's portfolio of 70 investments was valued at £889.7m as of December 31st. The company says that 2012 has started with a "healthy pipeline of new investment opportunities in UK and Europe.

"The company continues to perform well and the acquisitions made in the period complement the group's existing portfolio, providing greater diversification and long term added value," said Chairman Graham Picken.

Picken said that due to HICL's portfolio acquisition and healthy pipeline, the board has decided to raise further equity capital by way of C shares. "The proceeds will be used to repay the Group's revolving debt facility and fund any new investments which may be made or identified prior to the C share issue. We will announce further details and the proposed timetable later this month," Picken said.

HICL has so far utilised £135m of its £200m five-year revolving debt facility, and says it is in discussions about renewing it. "The refinancing of the existing facility with a replacement three-year £150m multicurrency facility is now well advanced."

The firm drew attention to the UK government's Infrastructure Plan 2011, launched in November, which requires £250bn of new investment. While this does not directly affect HICL given its strategy of acquiring investments in projects already procured, the group said that a major part of this plan will required new private financing and it takes comfort from the "government's recognition of the value derived from private sector involvement in infrastructure".

BC

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