TIDM3IN
RNS Number : 5832R
3i Infrastructure PLC
07 July 2022
7 July 2022
3i Infrastructure plc - Q1 Performance update
Resilient portfolio performing strongly; extension of credit
facilities
3i Infrastructure plc ('3iN' or the 'Company') is an investment
company whose purpose is to invest responsibly in infrastructure,
delivering long-term sustainable returns to shareholders and having
a positive impact on its portfolio companies and their
stakeholders. This statement relates to the period from 1 April
2022 to 30 June 2022 (the 'Period').
Highlights
-- Portfolio performing strongly: Our portfolio companies have
continued to perform in line with or ahead of expectations set at
March 2022. The essential nature of the services provided by 3iN's
portfolio companies ensures an element of pricing power that we
expect to underpin a positive correlation between inflation and
total portfolio value. 3iN's portfolio companies are also
part-funded with debt that is not inflation-linked, often fixed at
attractive long-term rates.
-- Further investment in TCR : On 14 June 2022, 3iN announced
that it had agreed to acquire the stake in TCR owned by funds
managed by DWS for c.GBP334 million. This will result in 3iN
increasing its holding from c. 48% to c. 96% of the equity in TCR,
alongside management. Completion is subject to certain third party
consents and is expected to take place in the final quarter of
2022.
-- Extension of credit facilities: On 6 July 2022, the Company
restructured and extended its existing Revolving Credit Facility
('RCF') to GBP900 million maturing in November 2024, comprising a
base facility of GBP600 million and commitments under an accordion
facility of GBP300 million.
-- Income as expected in the Period: Total income and non-income
cash was in line with expectations at GBP36 million in the Period.
This compares with GBP22 million of income and non-income cash
received in the same period last year.
-- Final FY22 dividend payment and FY23 target: Payment of the
final dividend for FY22 of 5.225 pence per share is due to be made
on 11 July 2022. The Company is on track to deliver the FY23
dividend target of 11.15 pence per share, up 6.7% from FY22.
-- Net asset value ('NAV'): The reported NAV of the Company at
31 March 2022, adjusted for the final dividend for FY22, is 298.1
pence per share. The TCR acquisition announced in the Period
implies an increase in NAV of c.4 pence per share from aligning the
value of the existing stake in TCR as reported at 31 March
2022.
Scott Moseley and Bernardo Sottomayor, Managing Partners and
Co-Heads of European Infrastructure, 3i Investments plc, Investment
Manager of the Company, commented: "The portfolio continues to
perform strongly. We are delighted with the further investment in
TCR which is consistent with our preference to invest further in
existing portfolio companies. The extension of the RCF provides
appropriate funding coverage of our investment commitments and is
consistent with our strategy of maintaining an efficient balance
sheet."
Portfolio update
TCR has continued to perform ahead of our expectations and has
now returned to its pre-COVID EBITDA. The acquisition of DWS's 48%
stake on 14 June 2022 will enable 3iN to take full advantage of
future growth opportunities in airports around the world.
ESVAGT has outperformed our expectations since we increased our
stake in February 2022. The Investment Manager will continue to
work with ESVAGT's management team to capitalise on the growth
potential in the offshore wind market, both in Europe and the
US.
Infinis continues to perform strongly and benefit from higher
power prices achieved on uncontracted volumes. Plans to develop
solar energy generation and battery storage are moving ahead in
line with expectations.
Tampnet has performed strongly in the Period driven by higher
revenues from mobile units across the North Sea and the Gulf of
Mexico, benefitting from the pick-up in offshore activity and the
recent focus on energy security.
The remainder of the portfolio also performed well during the
Period. The Company is on track to complete its investment in GCX
during the summer.
The portfolio is delivering income in line with expectations .
Total income and non-income cash was GBP36 million in the Period.
This compares with GBP22 million of income and non-income cash
received in the same period last year.
Balance sheet
At 30 June 2022, the Company's cash balance was GBP77 million,
with drawings of GBP135 million under the RCF. Subject to approval
at the AGM on 7 July 2022, this cash balance will be reduced by
payment of the final dividend of GBP47 million on 11 July 2022. The
cash balance and drawings at 30 June 2022 include proceeds from the
syndication of 16.9% of the Company's stake in ESVAGT of GBP91
million and from the sale of the European projects portfolio of
GBP106 million, both of which completed during the Period.
Notice has been given to call the outstanding balance on the
vendor loan note due from the sale of WIG in 2019. The Company
expects to receive proceeds of GBP101 million in July 2022
including interest.
On 6 July 2022, the Company restructured and extended its
existing RCF to GBP900 million maturing in November 2024,
comprising a base facility of GBP600 million and commitments under
an accordion facility of GBP300 million. The previous commitments
under the one-year credit facility of GBP400 million to January
2023 have been cancelled. This provides increased flexibility over
how and when to repay drawings under the facility, as well as
longer term liquidity to make further investments.
Ends
For information, please contact:
Thomas Fodor Shareholder enquiries +44 20 7975 3469
Kathryn van der
Kroft Media enquiries +44 20 7975 3021
----------------------- -----------------
About 3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended
investment company, an approved UK Investment Trust, listed on the
London Stock Exchange and regulated by the Jersey Financial
Services Commission. The Company's purpose is to invest responsibly
in infrastructure, delivering long-term sustainable returns to
shareholders and having a positive impact on our portfolio
companies and stakeholders.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc,
is authorised and regulated in the UK by the Financial Conduct
Authority and is the investment manager of 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 April 2022
to 30 June 2022 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDSSFFIMEESEIW
(END) Dow Jones Newswires
July 07, 2022 02:00 ET (06:00 GMT)
3i Infrastructure (LSE:3IN)
Historical Stock Chart
From Jul 2024 to Jul 2024
3i Infrastructure (LSE:3IN)
Historical Stock Chart
From Jul 2023 to Jul 2024