Incremental Investment - RMG Roads Project
23 December 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").
Incremental Investment - RMG Roads Project
Following the announcement of HICL's initial investment in the Road Management Group ("RMG") on 8 November 2021, the Board is pleased to announce that the Company has agreed to acquire a further 25% interest. RMG is a holding company which comprises two UK shadow toll roads (the "Projects"): the A417/A419 Swindon-Gloucester and the A1(M) Alconbury-Peterborough. The interest is being acquired from KBR Inc. for consideration of up to c. £25m and is expected to complete in the first quarter of 2022. The investment will be funded by HICL's Revolving Credit Facility.
This acquisition aligns with HICL's strategy to continue to source incremental investment opportunities via off-market arrangements in well-known, high-quality core infrastructure assets, and is accretive to key portfolio metrics.
Following the completion of this acquisition, HICL will hold a 58.3% interest in RMG. The proportion of demand-based assets in the portfolio with correlation to GDP remains below 20%.
Edward Hunt, Director at InfraRed, said:
"We are delighted to have increased HICL's interest in these high-quality UK transport links which play an important role in connecting UK communities. Incremental investments such as this have an attractive risk and reward dynamic, and are a key strand of HICL's acquisition strategy."
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Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800 / info@hicl.com
Harry Seekings
Edward Hunt
Helen Price
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
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)
The Investment Manager to HICL is InfraRed Capital Partners Limited ("InfraRed") which has successfully invested in infrastructure projects since 1997. InfraRed is a leading international investment manager, operating from offices in London, New York, Seoul and Sydney, and managing 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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