HICL signs first PPP LIBOR transition
9 July 2021
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".)
HICL signs first PPP LIBOR transition
The Board of HICL is pleased to announce that, in a successful pilot scheme sponsored by InfraRed, one of its investments, the Sheffield Building Schools for the Future (BSF) project, has become the first public-private partnership ("PPP") in the UK to proactively amend its financing agreements ahead of the announced LIBOR cessation on 31 December 2021.
These amendments, agreed with the project's lenders, mitigate risks relating to the cessation of the LIBOR interest rate benchmark. The agreement becomes active upon the cessation of LIBOR and is subject to public sector client approval, in this case Sheffield City Council. The Company was supported by Linklaters LLP and Ager Capital Partners Limited, and the lending group comprised SMBC Group and MUFG.
The intention is that this will be used as a template to provide a smooth transition for other UK PPP projects, including those in the HICL portfolio, during the remainder of the calendar year.
Harry Seekings, Head of Infrastructure at InfraRed, said: "We are proud to be leading the market in this first PPP LIBOR transition and to continue our work supporting the Infrastructure and Project Authority's initiative to coordinate a smooth transition to the SONIA benchmark in the UK PPP market."
Ian Russell, Chairman of the Board, said: "HICL's leadership in this industry-wide challenge protects HICL's interests and those of our stakeholders, including public sector clients."
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Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800 / info@hicl.com
Harry Seekings
Keith Pickard
Edward Hunt
Kirsty MacCallum
Teneo +44 (0) 20 7420 3169 / HICL@teneo.com
Haya Herbert-Burns
Matthew Thomlinson
Jesse Mathews
Investec Bank plc +44 (0) 20 7597 4952
David Yovichic
RBC Capital Markets +44 (0) 20 7653 4000
Matthew Coakes
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 116 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)
The Investment Manager to HICL is InfraRed Capital Partners Limited ("InfraRed") which has successfully invested in over 200 infrastructure projects since 1997. InfraRed is a leading international investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, New York, Mexico City, Seoul and Sydney. With around 200 professionals it manages equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed is authorised and regulated by the Financial Conduct Authority.
The infrastructure investment team at InfraRed consists of over 100 investment professionals, all with an infrastructure investment background and a broad range of relevant skills, including private equity, structured finance, construction, renewable energy and facilities management.
InfraRed implements best-in-class practices to underpin asset management and investment decisions, promotes ethical behaviour and has established community engagement initiatives to support good causes in the wider community. InfraRed is a signatory of the Principles of Responsible Investment.
Further details can be found on InfraRed's website www.ircp.com .
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