25 April 2023
HICL Infrastructure PLC
"HICL" or "the Company" and, together with its subsidiaries, "the Group", the London-listed infrastructure investment company managed by InfraRed Capital Partners Limited ("InfraRed" or the "Investment Manager").
Investment Activity
Partial Disposal of Northwest Parkway
The Board is pleased to announce that HICL has entered into an agreement to dispose of 30% of its equity interests in the US Northwest Parkway toll-road project ("NWP") for a consideration of c. USD86m. Proceeds from the sale are in excess of the Company's March 2022 pro-rata asset valuation.
Completion is expected in June, subject to customary closing conditions. Following completion of the transaction, HICL will retain a 23.3% equity interest and preserve its governance rights at the asset level board.
HICL invested in NWP in December 2016, and the sale price represents an 11.0% holding period IRR and a 1.8x multiple on the pro-rata cash invested. This transaction enhances HICL's track record of achieving capital growth through selective and disciplined asset realisations, a key pillar of the Company's growth and funding strategy.
Proceeds from the transaction will be recycled into the Company's investment in French fibre-to-the-home platform Altitude Infra which was announced earlier this month.
Edward Hunt, Head of Core Income Funds at InfraRed said:
"Active capital recycling remains a key lever to optimise HICL's portfolio construction, providing a valuable source of funding beyond capital markets that compounds returns for shareholders and drives NAV outperformance."
Completion of Acquisition
The Board is pleased to confirm that HICL has completed the previously announced acquisition of an equity interest in Texas Nevada Transmission LLC, a US electricity transmission asset, following the receipt of regulatory approvals and customary third-party consents.
The details of the transaction were announced by the Company on 5 September 2022.
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Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800 / info@hicl.com
Edward Hunt
Helen Price
Mohammed Zaheer
Teneo +44 (0) 20 7420 3169/ HICL@teneo.com
Haya Herbert-Burns
Matthew Thomlinson
Investec Bank plc +44(0) 20 7597 4952
David Yovichic
RBC Capital Markets +44 (0) 20 7653 4000
Matthew Coakes
Aztec Financial Services (UK) Limited +44(0) 203 818 0246
Chris Copperwaite
Sarah Felmingham
HICL Infrastructure PLC
HICL Infrastructure PLC ("HICL") is a long-term investor in infrastructure assets which are predominantly operational and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange.
With a current portfolio of over 100 infrastructure investments, HICL is seeking further suitable opportunities in core infrastructure, which are inherently positioned at the lower end of the risk spectrum.
Further details can be found on the HICL website www.hicl.com.
Investment Manager (InfraRed Capital Partners)
InfraRed Capital Partners is an international infrastructure investment manager, with more than 190 professionals operating worldwide from offices in London, New York, Sydney and Seoul. Over the past 25 years, InfraRed has established itself as a highly successful developer and custodian of infrastructure assets that play a vital role in supporting communities. InfraRed manages US$14bn+ of equity capital1 for investors around the globe, in listed and private funds across both income and capital gain strategies.
A long-term sustainability-led mindset is integral to how InfraRed operates as it aims to achieve lasting, positive impacts and deliver on its vision of Creating Better Futures. InfraRed has been a signatory of the Principles of Responsible Investment since 2011 and has achieved the highest possible PRI rating2 for its infrastructure business for seven consecutive assessments, having secured a 5-star rating for the 2021 period. It is also a member of the Net Zero Asset Manager's Initiative and is a TCFD supporter.
InfraRed is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. InfraRed represents the infrastructure equity arm of SLC Management, which also incorporates BentallGreenOak, a global real estate investment management adviser, and Crescent Capital, a global alternative credit investment asset manager.
1 Data as at Q3 2022. Equity Capital is calculated using a 5-year average FX rate
2 Principles for Responsible Investment ("PRI") ratings are based on following a set of Principles, including incorporating ESG issues into investment analysis, decision-making processes and ownership policies. More information is available at https://www.unpri.org/about-the-pri
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