TIDM3IN
RNS Number : 0736O
3i Infrastructure PLC
29 September 2023
29 September 2023
3i Infrastructure plc - Pre-close update
Expected to deliver another period of outperformance
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 influence on our portfolio companies and their
stakeholders.
This statement relates to the period from 1 April 2023 to 28
September 2023 (the 'Period').
Scott Moseley and Bernardo Sottomayor, Managing Partners and
Co-Heads of European Infrastructure, 3i Investments plc, Investment
Manager of the Company, commented:
"3i Infrastructure plc is unique in the infrastructure sector.
The Attero realisation continues our extensive track record of
creating value through successfully managed exit processes and
provides further evidence of our ability to sell portfolio
companies at a significant uplift to book value. Our portfolio
continues to deliver strong earnings growth and attractive
reinvestment opportunities across the majority of our assets. These
factors are likely once again to drive performance ahead of 3iN's
target return."
Highlights
-- Attero sale: Represents a c.31% uplift to our latest
valuation, demonstrating the resilient demand for high-quality
infrastructure businesses. This exit also extends the Investment
Manager's track record of achieving exits a material premium to
NAV. Completion is expected in Q3 FY24 subject to regulatory
approval.
-- Portfolio continues to deliver strong earnings growth and reinvestment opportunities:
- ESVAGT is experiencing high utilisation and day rates across
all segments. A new ten-year contract with Ø rsted was signed in
July, under which ESVAGT will deliver an additional
renewable-fuel-enabled Service Operation Vessel ('SOV') in support
of the Hornsea 3 wind park. ESVAGT is the clear market leader in
European SOV provision and is actively pursuing an attractive
pipeline of additional contracts in both Europe and the US
- TCR has delivered another period of strong performance, with
earnings growth materialising more rapidly than envisaged in our
valuation case. In the period, new contracts were won in multiple
jurisdictions across Europe, the US and Australia. TCR is
experiencing supportive structural tailwinds including an
increasingly attractive product offering relative to finance
leases, a continued push by airports to switch to electric
equipment when available, as well as an increasingly global
presence
- Tampnet has again outperformed our expectations.
Digitalisation of the offshore energy sector is gaining momentum
and is supporting demand for Tampnet's critical industrial use
cases, including private networks. The unique opportunity available
for Tampnet in facilitating the energy transition offshore is
increasingly apparent, with noteworthy momentum starting to
materialise in the carbon capture and offshore wind segments.
During the Period, Tampnet acquired DasNetz AG, an operator in the
North Sea offshore wind telecommunications segment
- Future Biogas has performed well since acquisition and is
actively progressing its investment pipeline. The proof of demand
for Future Biogas's offering was evidenced in the Period, as the
company announced it had signed a gas supply agreement with
AstraZeneca ('AZ'). 3iN subsequently invested a further GBP35
million in Future Biogas to fund the construction of the UK's first
unsubsidised anaerobic digestion plant in support of the AZ
contract. The plant will supply over 100GWh of biomethane to AZ's
UK sites
- Ionisos closed a EUR60 million debt raise and 3iN invested
EUR5 million of additional equity to fund the acquisition of the
E-beam facility in Daniken and other advanced projects
- Valorem and GCX have also outperformed our investment case.
Valorem successfully raised a EUR75 million Green Euro PP and is
finalising the farm down of a minority stake in a subset of its
French operational portfolio at attractive terms, despite the
current volatile market environment. GCX is actively pursuing
multiple opportunities which would maximise the value of its
existing cables and reposition the business as a leading subsea
platform for growth
- On 15 June, 3iN made a further investment into DNS:NET of
EUR24 million to fund the continued growth of its fibre network.
DNS:NET continues to face a more challenging fibre sector outlook
in Germany, resulting in significant delays in the rollout of its
network around Berlin. As a result, we have effected significant
organisational changes, impacting both processes and people, with
the arrival of new CEO Ralph Steffens and an interim CFO. We will
be reflecting their initial assessment of an achievable business
plan in the September valuation
-- Income slightly ahead of expectations in the Period: Total
income and non-income cash in the Period was GBP103 million, up 5%
from the same period last year.
-- FY24 dividend target: The Company is on track to deliver the
FY24 dividend target of 11.90 pence per share, up 6.7% from FY23,
which is expected to be fully covered by net income.
-- No material near-term refinancing risk in the portfolio: As
disclosed in the FY23 results, there are no material refinancing
requirements in the portfolio until 2026. As at the Period end
date, c.92% of portfolio company debt is either hedged or fixed
rate and we expect that c.88% of portfolio company debt will mature
beyond the next three years.
Balance Sheet
At 29 September 2023, the Company was EUR724 million (GBP625
million) drawn into its GBP900 million Revolving Credit Facility
('RCF') and has a cash balance of GBP6 million. All drawings are in
euros, with the cost of debt linked to Euribor. The EUR215 million
proceeds expected from completion of the Attero realisation will be
used to reduce the outstanding balance of the RCF. The RCF
commitments run to November 2026, after we exercised the second
one-year extension option available under the terms of the facility
during the Period.
Ends
For information, please contact:
Thomas Fodor Shareholder enquiries +44 20 7975 3469
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, 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 influence on our portfolio companies and their
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 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 2023
to 28 September 2023 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 changes 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.
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