REG - 3i Infrastructure - 3i Infrastructure plc – Pre-close update

3i InfrastructureAnnouncement

31/03/2021 07:00

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RNS Number : 0316U  3i Infrastructure PLC  31 March 2021

31 March 2021

 

3i Infrastructure plc - Pre-close update

 

 

 

Portfolio performing well; on track to meet target return and dividend

 

3i Infrastructure plc ("3i Infrastructure" or the "Company") is an investment
company whose purpose is to deliver a long-term sustainable return to
shareholders from investing in infrastructure. This statement relates to the
period from 1 October 2020 to 30 March 2021 (the "Period").

 

 

Highlights

 

·    Portfolio performing well: Overall our portfolio remains resilient
despite the continuing effects of the pandemic, and continues to perform in
line with our medium-term return target.

 

·    Investments:

 

- In December 2020, the Company completed the acquisition of further stakes in
our Dutch PPP projects from our co-shareholders Fluor Infrastructure and
Heijmans Nederland for a total equity investment of c.€25 million.

 

- On 30 March 2021, following receipt of regulatory approvals, Tampnet
completed the bolt-on acquisition of a 1,200km offshore fibre cable system in
the Gulf of Mexico from BP.

 

·    Income as expected in the Period: Total income and non-income cash
was £69 million in the Period, in line with our expectations. This compares
with £82 million of income and non-income cash received in the same period
last year.

 

·    FY21 dividend target: The Company is on track to deliver its dividend
target for the year ending 31 March 2021 of 9.80 pence per share, a
year-on-year increase of 6.5%.

 

·    Strong available liquidity: At 30 March 2021, the Company's cash
balance was £462 million.

 

 

Phil White, Managing Partner and Head of Infrastructure, 3i Investments plc,
Investment

Manager of the Company, commented: "During the Period we have been pleased by
the performance of our portfolio. Our markets remain very competitive, but we
have a good pipeline of potential acquisitions and continue to focus on
investments that we believe will enhance the Company's portfolio."

 

 

Portfolio update

 

The portfolio continues to perform well, with the majority of investments
meeting or exceeding our expectations. Despite the ongoing operating and
economic challenges of the pandemic, there is positive sentiment around the
near-term recovery of some markets following the roll-out of vaccines.

 

Infinis has outperformed our expectations in the Period, helped by higher
power prices. In December it completed a refinancing on favourable terms with
extended maturities. The solar development initiative also made good progress,
with the Ling Hall project under construction and others now seeking formal
planning approval.

 

TCR continued to be resilient through the Period which has been dominated by a
second wave of Covid-19 and the reintroduction of stay-at-home policies in
many countries in which TCR operates. Although air traffic will remain
suppressed in the near term, the rapid development of vaccines underpins our
assumption of a longer term return to pre-pandemic levels of air travel by
2024.

 

Valorem's operating portfolio benefitted from favourable wind conditions, good
availability and a partial refinancing, while a number of new projects became
operational in the Period and the longer term development pipeline made
significant progress.

 

Ionisos has continued to benefit from cold sterilisation being an essential
service to the healthcare and pharma industries and, in most of its markets,
has seen strong demand through the Period. Following a review of operating
procedures and safety standards at its Italian subsidiary, Steril Milano,
Ionisos closed its industrial sites in Monza and Reggiolo after which Steril
Milano's ISO certification was suspended. Steril Milano, which represented 9%
of Ionisos' revenues in 2020, is undertaking a thorough investigation and
assessing potential next steps.

 

As usual, an important element of the determination of the Company's results
for the full-year to 31 March 2021 will be the valuation exercise carried out
on the investment portfolio at that date.

 

 

Balance sheet

 

At 30 March 2021, the Company's cash balance was £462 million. The full
revolving credit facility of £300 million is undrawn and available to fund
potential new investment opportunities and to invest in portfolio companies if
needed.

 

£104 million of deferred proceeds (including accrued interest) from the sale
of WIG was received in December 2020 with a similar amount due in December
2021.

 

The Company received proceeds of £29 million from the 3i India Infrastructure
Fund's sale of Krishnapatnam Port in December 2020. This represented most of
the value in that Fund.

 

 

Ends

 

 

 

For information, please contact:

 

 Richard Laing          Chair, 3i Infrastructure plc  +44 1534 847 410
 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 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 Manager 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 2020 to 30 March 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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