Hicl Infrastructure Share Discussion Threads

[williamcooper104] 25/9/2020 19:21

The premium means little PFI secondary assets are gold dust - very hard to buy - they trade at a premium to a spreadsheet valuation which is based of conservative assumptions

[panshanger1] 25/9/2020 16:58

Nice move up today and ahead of recent placing price Good diversifier with solid 5% yield albeit on a high premium

[ec2] 22/9/2020 08:42

With NS&I now cutting their rates to 0.01% and the best one year fix elsewhere at only 1.30% (Paragon) this seems a better place to diversify some cash. Just picked some up early at 1.6169.

[petewy] 20/9/2020 12:19

Thee mentions in this week's IC.
hxxps://www.investorschronicl e.co.uk/funds-etfs/2020/09/17/hicl-reliable-income-from-essential-infrastructure/

[exel] 13/9/2020 22:19

you did well EC2 - my buy re-price is a tad lower, but that hasn't worked, so far.

[ec2] 10/9/2020 11:30

Been patiently waiting for several weeks to get into these. The recent price weakness to the pre-election price jitter levels of last Dec., the 5% div and reasonable comments from INPP this morning tipped the balance. In @ 1.636.

[skinny] 21/7/2020 07:10

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HICL is pleased to announce that it has agreed to acquire the remaining 50% interest in the M17/M18 Gort to Tuam Road PPP in the Republic of Ireland (the "Project") from the Marguerite I Fund. The consideration is €41m and the transaction is expected to complete by the end of September.

The Project is a 28-year road concession to design, finance, construct and maintain a new 57km dual carriageway section of the M17/M18 between Gort and Tuam in County Galway on the west coast of Ireland. The client is Transport Infrastructure Ireland. Construction works were completed in December 2017. The project is operational and receives availability revenue payments, not dependent on usage of the road. HICL acquired an initial 10% interest in the Project at financial close in 2014, and an additional 40% interest in 2019. With completion of this incremental investment, HICL will hold a 100% interest.

[williamcooper104] 17/7/2020 16:47

Would be mush cheaper for government to just make a take over for the equity Which would of course be at a premium So not exactly end of world

[williamcooper104] 17/7/2020 16:44

And debt break costs which can easily be 150-180 percent of face value

[williamcooper104] 17/7/2020 16:43

Un-geared project WACC post tax (old tax rate) So about 3 something discount rate

[ec2] 17/7/2020 15:29

Many thanks for the knowledgeable comments. The exit penalties provide a margin of safety but are these likely to be at the level of premium over NAV that the shares are trading at?

[williamcooper104] 17/7/2020 11:55

The prepayment premiums are higher than HICLs premium rating It won't happen - not even Corbyn Labour was proposing this

[jonwig] 17/7/2020 11:32

The govt can't and won't 'print money' to buy out PPP contracts.

The current high level of borrowing is tenable only because the markets believe it won't be monetised. (The BoE has said it won't.) To some extent it's a confidence exercise, and increased taxation is in the news because that will bolster confidence that the govt will be responsible.

There are contrary views: sterling is weak and some hedge funds are betting against it; index-linked gilts are strong because of inflation fears.
On the other hand, conventional gilts are firm and interest rates even at 10 years are around zero.
It's a difficult minefield to navigate, but I agree with WC that we investors would be off to the races if the contracts were bought out.

[ec2] 17/7/2020 11:21

Exactly. It's the termination of contracts that concerns me and I am not sure the high premium over NAV reflects this.

[williamcooper104] 17/7/2020 11:18

What government could do of course is money print to buy back PFI contactsWhich would be the end of HICL but we'd all go out with a feast as the prepayment penalties on PFIs are super onerous

[williamcooper104] 17/7/2020 11:16

The core PFI market that HICL invests in has been dead/almost dead for years But it matters little The historic contracts will continue to pay and the value of HICL is the NPV of these contacts - you are not paying for growth. The share price is usually at a premium to NAV but that reflects a more accurate and higher valuation on PFI There are few better assets than legacy PFI contracts Have held HICL since IPO and have used it like cash ever since

[ec2] 17/7/2020 11:07

I've held these in the past and am considering buying back in but not so sure on the value of the business model in the current environment. OK much better than holding index linked guilts and I can see the benefits for pension funds, but why would governments not take advantage of low interest rates and money printing going forward to fund the projects themselves? They no longer seem to worry about their debt to GDP levels.

[skinny] 16/7/2020 07:15

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The Board of HICL Infrastructure PLC (the "Company" or "HICL") is pleased to announce that it proposes to raise additional equity capital through the issue of new ordinary shares in the capital of the Company ("New Ordinary Shares") by way of non-pre-emptive tap issuance (the "Issue").

The New Ordinary Shares will be issued at a price of 164.0p per Share (the "Issue Price"). The Issue Price represents a discount of 5.75 per cent. to the mid-market closing share price of 174.0p on 15 July 2020 and a premium of 7.68 per cent. to the last reported NAV of 152.3p (as at 31 March 2020).

The net proceeds of the Issue will be applied in reducing the Company's funding requirement of approximately £75m, and in providing additional resources in respect of the Company's advanced pipeline.

Details of the Issue

The Issue will be made to qualifying investors (as defined in section 86(7) of the Financial Services and Markets Act 2000 (as amended)) through the Company's brokers, joint corporate brokers, Investec Bank plc ("Investec") and RBC Capital Markets ("RBC"), and will be subject to the terms and conditions set out in the Appendix to this announcement (the "Appendix").

The Issue will be launched immediately following this announcement. To register their interest in participating in the Issue, potential investors should communicate their applications for New Ordinary Shares by telephone to their usual sales contact at Investec or RBC. The Issue is expected to close at 11.00 a.m. (London time) on Tuesday 21 July 2020 but may close earlier or later at the discretion of the Company, Investec and RBC.

The number of New Ordinary Shares to be issued will be agreed between Investec, RBC and the Company following the close of the Issue, and announced shortly thereafter. Investec and RBC may choose to accept applications, either in whole or in part, on the basis of allocations determined in agreement with the Company, and may scale down any applications for this purpose on such basis as the Company, Investec and RBC may determine. Investec and RBC may also, notwithstanding the above, subject to the prior consent of the Company: (i) allocate New Ordinary Shares after the time of any initial allocation to any person submitting an application after that time, and (ii) allocate New Ordinary Shares after the Issue has closed to any person submitting an application after that time.



Application for Admission

Application will be made to the Financial Conduct Authority for admission of the New Ordinary Shares to the premium segment of the Official List and to London Stock Exchange plc for admission to trading of the New Ordinary Shares on its main market for listed securities (the "Main Market"), (together, "Admission"). It is expected that Admission will become effective, and that dealings in the New Ordinary Shares on the Main Market will commence, on or around 23 July 2020.

[skinny] 16/7/2020 07:13

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The Board of HICL is issuing this Interim Update Statement, which relates to the period from 1 April 2020 to 15 July 2020.

Ian Russell, Chairman of HICL Infrastructure PLC, said:

"I am pleased with the solid progress the Company has made in the period, in both the management of the existing portfolio and the execution of its investment strategy. Importantly, we have continued to ensure that our infrastructure assets have remained available for the communities they serve throughout the pandemic.

"Operational performance of HICL's demand-based assets has been reassuring in the context of the gradual easing of travel restrictions. Revenue on the toll roads is ahead of expectations at the current time, underlining that these investments benefit from strategically important positioning in their respective regions.

"There is continued market appetite for high quality, core infrastructure assets. The Investment Manager has been actively pursuing attractive investment opportunities, with the Company announcing accretive acquisitions in the period, demonstrating HICL's commitment to its strategy of delivering stable and socially responsible long-term returns from core infrastructure investments at the lower end of the risk spectrum.

" The Company has today announced an equity fund raising at an issue price of 164p, a discount to the pre-announcement share price of 5.7%, to pay down the Revolving Credit Facility in respect of these investments and to provide additional resources to fund HICL's near-term pipeline of attractive opportunities ."

more.....

[winsome] 20/5/2020 10:40

Not bad considering. Seems they have taken a realistic approach to valuing the demand based assets, with lockdowns predicted to remain in place till 30th June, although lockdowns are already lifting and traffic volumes increasing. A63 webcam shows steady traffic today. I assume their detailed predictions for the demand based assets were formed at end of March, at the most pessimistic time.

[rik shaw] 20/5/2020 07:54

'In light of the impact of Covid-19, the Board has revised the target dividend guidance for the year ending 31 March 2021 to 8.25p per share(6) , maintaining the level of dividend paid in the year to 31 March 2020.'

[jonwig] 13/5/2020 17:10

Interesting that 39% of the dividend will be payment of interest. Complicates things if shares are held outside a tax wrapper.

[rik shaw] 13/5/2020 16:58

Dividend declaration:

[skinny] 18/12/2019 07:06

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The Board of Directors of HICL Infrastructure PLC ("HICL" or the "Company" and, together with its subsidiaries, the "Group") notes the announcement made today regarding Sun Life Financial's acquisition of a majority stake in the ultimate parent company of InfraRed Capital Partners Limited ("InfraRed"), the Company's Investment Manager.* The transaction is part of InfraRed's strategy to grow its infrastructure investment business in North America, with a focus on investing in renewable energy. For more information see www.ircp.com/news.

The Board notes InfraRed's statement and has been assured that the transaction will not affect InfraRed's continued performance of its role as Investment Manager and Operator of the Group's portfolio; and that InfraRed's management resources and support for HICL will be unaffected.

[rik shaw] 06/12/2019 09:00

NAV at interims was just short of 156p after payment of the current dividend so premium is not particularly high at present <3% compared with 12%+ recently.