REG - 3i Infrastructure - 3i Infrastructure plc - Q1 performance update

3i InfrastructureAnnouncement

07/07/2022 07:17

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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.£334
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
£900 million maturing in November 2024, comprising a base facility of £600
million and commitments under an accordion facility of £300 million.

 

·    Income as expected in the Period: Total income and non-income cash
was in line with expectations at £36 million in the Period. This compares
with £22 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 £36 million in the Period. This compares with £22
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 £77 million, with drawings of
£135 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 £47
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 £91 million and from the sale of the European projects portfolio of
£106 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
£101 million in July 2022 including interest.

 

On 6 July 2022, the Company restructured and extended its existing RCF to
£900 million maturing in November 2024, comprising a base facility of £600
million and commitments under an accordion facility of £300 million. The
previous commitments under the one-year credit facility of £400 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.

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