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

3i InfrastructureAnnouncement

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RNS Number : 2989B  3i Infrastructure PLC  30 September 2025

 

30 September 2025

 

3i Infrastructure plc - Pre-close update

 

 

High quality portfolio performing well,

Expected to exceed return target for the half year

 

 

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 2025 to 29 September 2025
(the 'Period').

 

Bernardo Sottomayor, Managing Partner and Head of European Infrastructure, 3i
Investments plc, Investment Manager of the Company, commented:

 

"I am pleased with the strong performance of our portfolio since the beginning
of this financial year. Our largest investment, TCR, is once again performing
ahead of expectations and generating significant value growth. We are really
excited about the portfolio's growth prospects and sustaining the strong
long-term performance of 3iN. The Company is on track to exceed its return
target for the half year."

 

 

Highlights:

 

-    On track to exceed our return target for the half year: portfolio
return likely to be ahead of expectations set at the start of the year, driven
by the strong performance of TCR, and ongoing earnings growth across the
portfolio as a whole in the last 12 months;

 

-    The Investment Manager's team is developing an attractive pipeline of
new investment opportunities, but remains disciplined on pricing. Our
intention remains to repay the Revolving Credit Facility ('RCF') with sales
proceeds from the next realisation;

 

-    Income ahead of prior-year: total income and non-income cash of £122
million including some additional portfolio distributions, is up 18% from the
same period last year; and

 

-    FY25 dividend target: The Company is on track to deliver the FY26
dividend target of 13.45 pence per share, up 6.3% from FY25, which is expected
to be covered by net income.

 

 

Portfolio performance in the Period:

 * TCR has outperformed expectations set in March 2025, driven by higher rental
margins and cost efficiencies. It has continued to expand its global footprint
and the strategic focus on electrifying the fleet has been a catalyst for
further leasing penetration. Following several years of outperformance,
diversification of customers and equipment types, development of the
integrated airport solutions business line and the recent growth into the US
market, TCR is now a leading global platform with a sustainable, well-defined
growth outlook, attracting increasing interest from larger private
infrastructure funds.

 * Infinis is performing ahead of our expectations set in March 2025. Good
progress has been made on solar and battery development during the Period, and
Infinis now has c. 230MW under construction.

 * ESVAGT management continues to see a robust pipeline of offshore wind Service
Operating Vessels ('SOVs') in the coming years, as energy transition and
energy security remain key focus areas of European governments and companies.
ESVAGT is experiencing some delays in the delivery of its SOVs under
construction due to operational challenges at the ship yards, which impacts
short term profitability. The uncertainty in the US market remains, but the
South Korean JV has started contract discussions with potential customers.

 * FLAG invested $70m during the period to acquire a fibre pair on the
transpacific ECHO system from Google which will provide revenues opportunity
on this key route as well as synergies with FLAG's existing routes. FLAG
continues to see strong demand for subsea fibre connectivity, driven by
hyperscaler growth and AI workloads. Furthermore, geopolitical constraints are
continuing to delay competing cable deployments, providing a first mover
advantage to FLAG's established Europe-to-Asia network.

 * Ionisos has grown revenues year-on-year, driven by real price increases and
stronger industrial cross-linking demand. However, this has been offset by
some unplanned maintenance and headwinds from short-term overcapacity in
certain segments of the market. The long-term outlook for the sector remains
strong.

 * We remain cautious on the speed of recovery at SRL. Equipment hire days
declined slightly year-on-year, as the market recovery has been concentrated
in the low-cost two-way signal segment, which sits at the more competitive end
of the market.

 * Our other portfolio companies are performing broadly in line with
expectations set at March 2025.

 

Balance Sheet: At 29 September 2025, drawings on the Company's £900 million
multi-currency RCF are £360 million. The Company has a cash balance of £13
million, leaving a net debt position of £347 million.

 

 

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 influence on its
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 2025 to 29 September 2025 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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