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
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").
-- 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
- 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.EUR25 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 GBP69 million in the Period, in line with our
expectations. This compares with GBP82 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 GBP462 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."
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
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
At 30 March 2021, the Company's cash balance was GBP462 million.
The full revolving credit facility of GBP300 million is undrawn and
available to fund potential new investment opportunities and to
invest in portfolio companies if needed.
GBP104 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 GBP29 million from the 3i India
Infrastructure Fund's sale of Krishnapatnam Port in December 2020.
This represented most of the value in that Fund.
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
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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(END) Dow Jones Newswires
March 31, 2021 02:00 ET (06:00 GMT)