TIDM3IN
RNS Number : 7886V
3i Infrastructure PLC
02 February 2017
2 February 2017
3i Infrastructure plc - Performance update
3i Infrastructure plc ("3i Infrastructure" or "the Company") is
a long-term investor in infrastructure businesses and assets. This
statement relates to the period from 1 October 2016 to 31 December
2016 (the "period").
Highlights
-- During the period, the Company completed two new transactions:
- The Company announced on 8 December 2016 that it had completed
the acquisition of 100% of Infinis plc and its subsidiaries
("Infinis"), investing GBP185 million.
- The Company committed to invest EUR6.5 million in the A27/A1
primary Public Private Partnership ("PPP") project in the
Netherlands, which reached financial close on 5 October 2016.
-- The portfolio continues to perform in line with expectations
overall, and the newer portfolio companies are performing well
since acquisition. Portfolio income totalled GBP19.2 million in the
period. Non-income cash of GBP5.6 million was also received.
-- Following completion of the Infinis acquisition, the Company
has invested all of the proceeds from its capital raise in June
2016. 3i Infrastructure continues to maintain an efficient balance
sheet, with ongoing liquidity available through its Revolving
Credit Facility ("RCF"). At 31 December 2016, the Company held
GBP54 million in cash and the RCF was GBP140 million drawn
including GBP30 million for letters of credit, leaving an undrawn
balance of GBP160 million. The Company has the ability to seek to
increase the Facility by up to a further GBP200 million.
-- The Company is on track to deliver its target dividend of 7.55p per share for FY2017.
-- The Investment Adviser continues to develop its pipeline of
new investment opportunities across the Company's focus markets of
economic infrastructure and greenfield projects.
Richard Laing, Chairman of 3i Infrastructure, said: "The Board
is pleased with the performance over the period. Since October, the
Company has secured two attractive new investments, further
diversifying the portfolio. All of the proceeds from the equity
raise have now been invested."
Investment activity
On 5 October 2016, a consortium comprising 3i Infrastructure,
Heijmans Capital and Fluor Infrastructure reached financial close
for the A27/A1 primary PPP project between Utrecht North, Eemnes
junction and the Bunschoten-Spakenburg interchange. Financial close
follows the provisional awarding of the project announced on 30
June 2016. The project's contract value amounts to approximately
EUR220 million (including management and maintenance for a period
of 25 years). 3i Infrastructure has committed to invest EUR6.5
million.
On 8 December 2016, 3i Infrastructure completed the acquisition
of 100% of Infinis, investing GBP185 million. The transaction was
announced on 31 October 2016. Infinis is the leading generator of
electricity from landfill gas in the UK. At 30 June 2016, Infinis
had 121 operating sites and 7 outsourced sites geographically
dispersed across the UK and had power generation installed capacity
of over 300MW. In connection with the transaction, BNP Paribas
Fortis S.A./N.V., Lloyds Bank PLC and The Royal Bank of Scotland
have provided a committed financing facility for the purposes of
refinancing during 2017 the outstanding 7.0% senior notes due 2019
issued by Infinis.
These two transactions are good examples of the Investment
Adviser's ability to source and execute investments for the Company
in mid-market economic infrastructure assets and greenfield
projects, capable of delivering resilient cash flows and returns in
line with the Company's objectives.
Portfolio returns
The Company's portfolio overall continues to perform in line
with expectations. ESVAGT experienced weaker trading conditions in
the oil and gas sector in the period but is continuing to see a
good pipeline of new opportunities in the offshore wind sector.
Portfolio income (dividends, interest receivable and any fees
received from portfolio assets) totalled GBP19.2 million in the
period, against GBP14.5 million in the quarter to 31 December 2015.
Non-income cash received in the period totalled GBP5.6 million,
compared to GBP0.9 million in the same quarter last year. The
increase reflects the contribution of the investments completed
since the beginning of the financial year.
Balance sheet
At 31 December 2016, the Company had GBP54 million of cash and
had drawn GBP140 million on its RCF, including GBP30 million for
letters of credit. The remaining undrawn RCF facility totalled
GBP160 million.
Ends
For information please contact:
Chairman, 3i Infrastructure
Richard Laing plc +44 1534 847 410
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Thomas Fodor Investor enquiries +44 20 7975 3469
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Kathryn van der
Kroft Media enquiries +44 20 7975 3021
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About 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended
investment company, listed on the London Stock Exchange and
regulated by the Jersey Financial Services Commission. The Company
is a long-term investor in infrastructure businesses and assets.
The Company's market focus is on economic infrastructure and
greenfield projects in developed economies, principally in Europe,
investing in operating businesses and projects which generate
long-term yield and capital growth.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc,
is authorised and regulated in the UK by the Financial Conduct
Authority and acts as Investment Adviser to 3i Infrastructure
plc.
This press release is not for distribution (directly or
indirectly) in or to the United States, Canada, Australia or Japan
and is not an offer of securities for sale in or into the United
States, Canada, Australia or Japan. Securities may not be offered
or sold in the United States absent registration under the U.S.
Securities Act of 1933, as amended (the "Securities Act"), or an
exemption from registration under the Securities Act. Any public
offering to be made in the United States will be made by means of a
prospectus that may be obtained from the issuer
or selling security holder and will contain detailed information
about 3i Group plc, 3i Infrastructure plc, 3i India Infrastructure
Fund and management, as applicable, as well as financial
statements. No public offering in the United States is currently
contemplated.
This statement aims to give an indication of material events and
transactions that have taken place in the period from 1 October
2016 to 31 December 2016 and their impact on the financial position
of 3i Infrastructure plc. These indications reflect the Board's
current view. They are subject to a number of risks and
uncertainties and could change. Factors which could cause or
contribute to such differences include, but are not limited to,
general economic and market conditions and specific factors
affecting the financial prospects or performance of individual
investments within the portfolio of 3i Infrastructure plc.
This information is provided by RNS
The company news service from the London Stock Exchange
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