Hicl Infrastructure Share Discussion Threads

[elbrus55] 16/7/2022 10:59

Market cap is approaching 3.5bn after the new shares are admitted next week. They are getting quote close to FTSE100 qualification.

[alan pt] 15/7/2022 16:59

DGI9 only got 60m recently (and were clearly looking for more, having just spent 300m cash on an acquisition), so nothing wrong with 160m

Use the loan facility to buy, then raise what you need to pay it down, no cash drag and no cash sitting there being eaten away by inflation...

[jonwig] 15/7/2022 16:41

EC2 - I agree on most of your points, but folks such as myself weren't interested in the PB offer, as our shares were in ISAs (or SIPPs).

I could have applied through ii within my ISA as an existing holder, and maybe some other brokers had similar deals. So the PI element was probably higher than the PB suggests. (In hindsight maybe I should have gone for some.)

Anyway, I'm pleased they had the demand and got it away. The way things seem to be going, a recession is on the way and a lot of assets may be offered at very cheap prices.

[ec2] 15/7/2022 15:03

Share price appears to be holding up just, but to only raise GBP160m seems a bit light to me, particularly when considering GBP15m of that has come from Sun Life. They've not exactly raised much fire power for the future pipeline. I would think as a GBP3.25bn fund they would have been looking for more like GBP400m as they will not be able to come back and ask for more in the near term. The over subscription element probably is in the offer for subscription which was probably limited in size due to the EUR8m rule.

[jonwig] 15/7/2022 09:20

It probably wasn't: "over £5 million of demand from the Retail Offer through PrimaryBid." They don't say what the retail offer's limit was, though the rules cap it at €8m.

However, some brokers (including ii) offered the placing to existing holders, separately from PB. My shares are in an ISA, so PB wasn'tworthwhile.

[elbrus55] 15/7/2022 09:09

The announcement does not say that the retail offer was oversubscribed. My application through PrimaryBid was allocated in full. (It is possible that some retail applicaltions eg any large applications were scaled back.)

[jonwig] 15/7/2022 07:08

Significantly oversubscribed, retail offer too:

[ec2] 13/7/2022 23:04

Decided not to participate in the cash call. UK interest rates are expected to rise to 3pct in 2023. Following the 2022 results, the Company guided that the 2023 and 2024 dividends would remain unchanged at 8.25p. Therefore insufficient return for me over risk free rates. Where is the inflation linking.

[peterbill] 13/7/2022 15:29

Happy to add at Current Yield - 4.86%

Hope the divis continue ...

[alan pt] 13/7/2022 14:26

AJB clearly still trying to put a process together for these placings, but fair enough, they got a manual process going quickly

Enquired about it yesterday and got a response saying that I needed to telephone and pay a £100 dealing charge. Then at the end of the day, an email with a special code for the PrimaryBid placing

I'm happy to buy some at 169p, as I normally have HICL as a core holding, but sold almost all of them when the price shot up over 180p, was waiting for an opportunity to replace

[jonwig] 12/7/2022 08:22

ii are offering it for existing holders. Would I buy in the market at 169p or even a bit less? No, so I'll pass.

[jonwig] 08/7/2022 13:53

It's ii or csdirect for me.

[alan pt] 08/7/2022 12:10

jonwig You might get a chance if with AJB or HL: hxxps://citywire.com/investment-trust-insider/news/aj-bell-and-hargreaves-open-share-issues-to-the-diy-masses/a2390474

Certainly got an email from AJB inviting me to apply for the recent DGI9 placing (via a rather manual process - "log in and send a secure message with the placing name in the title")

[jonwig] 08/7/2022 07:16

Fundraising at 169p. (NAV is 161.1p.) No target size given.

Also retail element via Primary Bid. (This will be capped at €8m, I guess.) PB is no use to me, as our shares are inside ISAs, and transferring them in would cost most of the discount.

Paying down the RCF and a big pipeline of opportunities.

[unastubbs] 24/6/2022 06:55

www.msn.com/en-gb/money/other/more-than-half-of-our-income-rises-in-line-with-inflation/ar-AAYOm2B?li=AAwnS0s&ocid=mailsignout

from the telegraph today, an interview/puff piece with Edward Hunt, of InfraRed Capital Partners, the manager of HICL

[williamcooper104] 30/5/2022 16:11

High inflation with high rates is a killer for most assetsHICL never fully IMO priced in QE/super low rates so hopefully there's a little slack But in a stagflation environment if our NAV stays still, with higher inflation being countered by higher discount rates I'll be happy Yep there's a little more risk on demand assets than with INPP/BBGI and up until a few months ago HICLs share price seemed to reflect this Hopefully if we can survive a pandemic without a divi cut then the demand assets will be robust during a more normal recession

[jonwig] 26/5/2022 09:27

Well I'll be getting 2.07p!

[panshanger1] 26/5/2022 08:59

Ex div today for 2.06 payday 30/6

[jonwig] 25/5/2022 11:37

William - yes, HICL say 0.8x correlation.

There's a bit of dividend risk in their pay-per-use assets.

But ... if the Bank raises interest rates sharply, HICL will likely have to raise the discount rate on future cashflows and asset values. This would reduce future dividend guidance and also NAV values. It might also mean that they will choose to use cashflows to reduce debt rather than pay dividends (though net debt is only £46.2m).

High inflation together with high interest rates is a combination which won't be much help to HICL, or anything else.

[williamcooper104] 25/5/2022 11:19

You'll struggle to get anything with 0.8 correlation to inflation without paying nose bleed prices for linkers Long duration linkers way way more volatile too

[nk104] 25/5/2022 10:01

Disappointing that dividend guidance for the next two years is flat. Inflation linked assets should mean an inflation linked dividend.

[jonwig] 25/5/2022 08:09

Full Year results:



As usual, very good, and they stress the inflation protection.

(A candidate for a windfall tax from our dysfunctional leadership 😢)

[peterbill] 20/4/2022 12:18

@schofip Anybody got a view on the disposal of Alexandra Hospital. I assume it is good thing and no down side.
Agree (more or less, the downside is losing an asset) - I'll be voting for the disposal.



Following a competitive auction process, the Board is pleased to announce that HICL has conditionally agreed to dispose its 100% interest in the Queen Alexandra Hospital PFI Project ("QAH") to InfraRed European Infrastructure Income Fund 4 ("EIIF 4"). This disposal is in line with the Company's stated strategy to deliver shareholder value and optimise portfolio composition through periodic disposals. The transaction is accretive to key portfolio metrics.

Proceeds to HICL will be c. £108m, with profits from the sale representing a 1.5 pence per share increase on NAV relative to HICL's valuation at 30 September 2021. ... more ...

Ian Russell, Chairman of HICL, said:

"The disposal of HICL's investment in Queen Alexandra Hospital is a tangible example of the Company's business model in action. HICL, through its Investment Manager InfraRed, seeks to enhance shareholder value in the existing portfolio through active asset management to optimise portfolio performance and composition. The proceeds provide an alternative source of funds to rotate into the Company's advanced pipeline. The Board unanimously recommends that Shareholders vote in favour of this transaction, as all the Directors intend to do in respect of their own beneficial holdings of Ordinary Shares."

[panshanger1] 19/4/2022 09:17

I have the 5 year high here @183.60