HICL Infrastructure PLC on Monday said it has completed a private placement of £150 million worth of loan notes via its subsidiary Infrastructure Investments LP.

The London-based investment firm, managed by InfraRed Capital Partner, said the proceeds of the placement will be used to reduce its drawings from its revolving credit facility.

The company said the notes comprise two tranches, with £100 million due in May 2033, and £50 million due in May 2035.

The notes were bought by Pension Insurance Corp, Canada Life and Sun Life Capital Management, with each acquiring £50 million of the notes. HICL noted that Sun Life is part of the same group as InfraRed.

Edward Hunt, head of core income funds at InfraRed commented: ‘The private placement saw strong demand and was more than four times oversubscribed, reflecting the underlying strength of HICL’s investment proposition. The notes reduce HICL’s interest rate and refinancing risks, provide additional flexibility and diversify HICL’s sources of long-term capital.’

HICL shares fell 0.5% to 150.43 pence each in London on Monday morning.

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