Hicl Infrastructure Share Discussion Threads

[alan pt] 26/9/2022 10:56

Thanks, that is a very good point!

So, little impact from interest rates, positive benefit from corporation tax cuts/non-rises, can't see much to panic about?

[williamcooper104] 26/9/2022 10:47

Indeed Don't forget we have almost exclusively long term fixed/hedged amortising debt - so won't ever have to pay the current/future market interest rates REITs are mostly to a greater/lesser extent exposed to this Still could well go lower

[spoole5] 26/9/2022 10:35

On a discount now

[williamcooper104] 06/9/2022 18:33

Fx hedges are very heavy on collateral requirements so will reduce debt capacity - hence why another equity raise at some point in not too distant future more likely than not (IMO only of course) We don't seem to have gotten any share price benefit from the almost certain future corporation tax non rise - that ought to add a couple of percent to NAV - and provide a good point to raise equity

[williamcooper104] 05/9/2022 14:14

Indeed and while I was relaxed about the low divi cover it did seem to weigh on the sp

[jonwig] 05/9/2022 13:57

Total Return.

[panshanger1] 05/9/2022 12:00

What are they doing about the dividend here though ?I may be wrong but think they are holding at current level - not much inflation link there

[winsome] 05/9/2022 11:37

Certainly HICL are a good long term hold and good hedge against Covid, inflation and whatever else is coming our way. I also hold BBGI which has less of its portfolio in the UK. I'll probably top up on these two holdings as a hedge against the ailing UK economy.

[alan pt] 05/9/2022 11:10

It's true that the dollar is high against everything at the moment, but I think it's optimistic to see the pound recovering, falling further seems the more likely course!

I note that both are to be funded from the recently cleared (and increased) credit facility. So no pressure to fundraise quickly, can do that whenever conditions look more favourable.

[jonwig] 05/9/2022 10:26

From H1 2020:

HICL hedges foreign exchange (“FX”) risk in relation to
assets it owns where cash flows are denominated in
currencies other than British Pounds
Hedging provides confidence in the near term yield and
helps mitigate the impact on NAV per share of FX
movements

[winsome] 05/9/2022 09:50

Given the current exchange rate, with HICL paying for this from UK sterling funding, is it a great time to be buying expensive US assets?. If the pound recovers to $1.40 at some time in next few years then that wipes a huge chunk off the NAV in sterling terms.

[williamcooper104] 05/9/2022 07:50

Indeed - looks like it's transforming into something more like 3IN

[jonwig] 05/9/2022 07:26

Two acquisitions:



Waldron's from #1003 and Texas electricity transmission. Good diversification from UK PFI.Payment via the RCF, but more equity needed further on, I guess. (As per #1005.)

[williamcooper104] 02/9/2022 18:56

Good news Wonder if it will lead to an equity raise

[jonwig] 02/9/2022 17:44

waldron - thanks. Absent details, that's beginning to look excellent news!

[waldron] 02/9/2022 17:36

The U.K. energy regulator has selected Diamond Transmission Partners, a consortium between Mitsubishi Corporation and HICL Infrastructure PLC, as preferred bidder for the 1.19 billion pound ($1.37 billion) power link serving the Hornsea 2 wind farm off the east coast of England.

Ofgem said that the consortium was selected to own and operate the asset for the next 24 years. The reserve bidder for the project is Transmission Capital Partners.

With a capacity of 1.3 gigawatts, Hornsea 2 is the world's largest windfarm in operation. It was developed by Danish group Oersted AS.



Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT



(END) Dow Jones Newswires

September 02, 2022 11:27 ET (15:27 GMT)

[williamcooper104] 17/8/2022 07:28

Against inflation - CPI - of 10.1 to July v 9.8 expectations

[jonwig] 01/8/2022 10:35

rik - thanks. The shport-term numbers look reasonable, apart from the UK political situation. Long-term it will advise on their DCF modelling.

[rik shaw] 01/8/2022 09:59

Valuation assumptions including adjusted inflation asssumptions were all set out in page 48 of the annual report 2022


UK (RPI and RPIx)1 6% year ending March 2023,
3.50% year ending March 2024
2.75% p.a. to 2030,
2.0% thereafter
2.75% p.a. to 2030, 2.0% thereafter
UK (CPIH)2 5.25% year ending March 2023,
2.75% year ending March 2024
2.0% thereafter
2.0% p.a.
Eurozone (CPI) 3.0% year ending March 2023
2.0% p.a. thereafter
2.0% p.a.
Canada (CPI) 3.0% year ending March 2023
2.0% p.a. thereafter
2.0% p.a.
USA (CPI) 4.0% year ending March 2023
2.0% p.a.
2.0% p.a.

[williamcooper104] 01/8/2022 08:23

I've seen long term inflation assumptions but don't remember seeing short term projections From memory long term assumptions have been 2.5 to 3 percent

[jonwig] 01/8/2022 08:05

TRading update looks OK, but what about this ...

Current inflation forecasts for FY2023 are ahead of the assumptions used by the Company in its March 2022 valuation. Sensitivity analysis provided in HICL's Annual Report 2022 showed that if inflation were 3% above HICL's forecast assumptions for the next 12 months, NAV per Share would increase by 3.6p. Based on current forecasts, the Manager would expect inflation to contribute a NAV per share uplift of between 3.0p and 3.6p to the Company's 30 September 2022 valuation.
That's too incomplete to mean much. What is the expected 30/09 NAV? What were their assumptions on inflation?
Maybe they've told us, but I can't remember what they were.

[schofip] 19/7/2022 21:17

Yes I was already a shareholder but you AJ Bell have let me take part in other bookbuilds where I wasn't a shareholder. They charge £100 commission for that.

[jonwig] 18/7/2022 18:36

It's not just AJB: ii carried the offer as well, to existing holders. (This has no connection with PB, whose offerings are quite separate from broker ones.)

[aamhager] 18/7/2022 18:24

Why did they invite you? Were you a shareholder already? Do they usually invite you to other Primarybid offers?

[schofip] 18/7/2022 17:59

Well I was emailed by AJ Bell and invited to take part in the book build and purchased another 6500 shares into my ISA portfolio, and was allotted my full request. If anyone here was not able to do that through their own broker maybe you need to switch.