TIDM3IN
RNS Number : 2272A
3i Infrastructure PLC
01 February 2022
1 February 2022
3i Infrastructure plc - Q3 Performance update
A busy period of investment activity; portfolio continues to
perform well.
3i Infrastructure plc ('3i Infrastructure' 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 our portfolio
companies and their stakeholders. This statement relates to the
period from 1 October 2021 to 31 December 2021 (the 'Period').
Highlights
-- New investment commitments of c.GBP850m:
- On 17 November 2021, 3i Infrastructure agreed to invest
c.GBP376 million to acquire 100% of Global Cloud Xchange ('GCX').
GCX is a leading global data communications service provider and
owns one of the world's largest private subsea fibre optic
networks
- On 3 December 2021, the Company agreed to acquire the 50%
stake in ESVAGT owned by its co-investor AMP Capital for c.GBP258
million. 3i Infrastructure will hold 100% of the equity in ESVAGT
upon completion which is expected to take place on 1 February
2022
- On 14 December 2021, 3i Infrastructure completed the c.GBP191
million acquisition of a 92% stake in SRL Traffic Systems ('SRL'),
the market leading traffic management equipment rental company in
the UK
- On 16 December 2021, the Company agreed to invest a further
c.GBP21 million into Valorem through a capital increase to fund its
growth, raising the Company's stake in Valorem to c.33%
-- Successful realisation of Oystercatcher's four European
terminals: On 29 October 2021, the Company completed the sale of
its 45% stakes in four European liquid storage terminals for
proceeds of c.EUR55 million after debt repayment. 3i Infrastructure
continues to hold a 45% stake in Oiltanking Singapore
-- Portfolio performing well against the expectations we set in September 2021
-- Income as expected in the Period: Total income and non-income
cash was in line with expectations at GBP26 million. This compares
with GBP24 million of income and non-income cash received in the
same period last year
-- On-track to meet FY22 dividend target of 10.45 pence per
share, a year-on-year increase of 6.6%
-- Increase in credit facilities: In December, the Company
received lender approval to increase its existing Revolving Credit
Facility ('RCF') by GBP200 million to GBP600 million. In January
2022, the Company obtained an additional one-year credit facility
of GBP400 million from existing lenders. Aggregate credit
facilities now total GBP1 billion.
Phil White, Managing Partner and Head of Infrastructure, 3i
Investments plc, Investment Manager of the Company, commented:
"This was a very busy period of investment activity. We are
delighted with our new investments in GCX and SRL, both in growth
sectors with strong market positions. Increasing our stake in
ESVAGT to 100% and our injection of additional capital into Valorem
will benefit the Company from further growth in those platforms.
Overall, the portfolio has seen strong performance since the
beginning of the financial year, and has met our income
expectations. We have increased our credit facilities to ensure
that we continue to have ample liquidity to make further new
investments."
Portfolio update
Overall the portfolio has performed well in the Period, meeting
or exceeding the expectations we set in September 2021.
On 29 October 2021, the Company completed the sale of its 45%
stakes in four European liquid storage terminals to Evos who also
acquired the 55% stakes in the terminals held by co-shareholder
Oiltanking GmbH. The proceeds from the transaction were used to
repay debt and related break costs of the holding company,
Oystercatcher. The balance of the proceeds of c.EUR55 million was
distributed to the Company.
On 17 November 2021, the Company agreed to invest c.GBP376
million to acquire a 100% stake in GCX and partner with GCX's
management team to invest in a leading platform in the sector, with
the ambition to increase the utilised capacity on GCX's existing
routes as well as to add new routes and customers. GCX provides
high-bandwidth connectivity, an essential service to a range of
blue-chip customers including hyperscalers, telecommunications
operators, new media providers and enterprises. Its 66,000km of
cables span 46 countries from North America to Asia, with a
particularly strong position on the Europe-Asia and Intra-Asia
routes. Completion is subject to certain regulatory approvals and
is expected mid-2022.
On 3 December 2021, the Company agreed to acquire the 50% stake
in ESVAGT owned by its co-investor AMP Capital for c.GBP258
million. Upon completion, which is expected to occur on 1 February
2022, 3i Infrastructure will hold 100% of the equity in ESVAGT. The
acquisition will allow the Company to benefit from the rapid growth
in the offshore wind market as many European governments and US
states have set ambitious offshore wind build-out targets as part
of their wider net-zero emissions plans.
On 14 December 2021, 3i Infrastructure completed the acquisition
of a 92% stake in SRL for c.GBP191 million. Management has
re-invested to acquire the remaining 8% stake. The Company has
provided a further GBP83 million of debt financing to SRL with the
intention of replacing this with third party debt in due course.
SRL is the market leading traffic management equipment rental
company in the UK and is headquartered in Cheshire. It owns a fleet
of almost 13,000 items of traffic management equipment, which it
rents to local authorities, utilities, contractors and traffic
management companies from a nationwide network of depots.
On 16 December 2021, 3i Infrastructure announced that it had
agreed to invest a further c.EUR25 million into Valorem through a
capital increase to fund its growth, raising the Company's stake in
Valorem to c.33%. This funding will support the continued growth in
Valorem's installed base of operational assets and development
pipeline. Valorem is well positioned to benefit from France's
ambition to increase renewable energy generation to 40% (from 27%
currently) by 2030 and from ambitious renewable power development
programmes in Finland and Greece. This investment completed on 17
December 2022.
Balance sheet
At 31 December 2021, the Company's cash balance was GBP86
million, with drawings of GBP70 million under the RCF. This cash
balance was subsequently reduced by payment of the interim dividend
of GBP47 million in January 2022.
In December 2021, 3i Infrastructure received lender approval to
increase the RCF by GBP200 million to GBP600 million. In January,
the Company obtained an additional one-year credit facility of
GBP400 million from existing lenders. Aggregate credit facilities
therefore total GBP1 billion today.
We have rolled the outstanding balance on the vendor loan note
due from the sale of WIG in 2019. The Company received GBP12
million of accrued interest in December 2021, leaving GBP98 million
of deferred proceeds due in December 2023 and callable on 6 weeks'
notice.
- 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 October
2021 to 31 December 2021 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.
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