TIDMHICL
RNS Number : 3581V
HICL Infrastructure PLC
05 April 2023
5 April 2023
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").
Acquisition Activity - French Fibre Investment
The Board is pleased to announce that HICL has entered into an
agreement to acquire a minority equity position in Altitude's
fibre-to-the-home platform ("Altitude Infra"), investing alongside
other InfraRed-managed funds and co-investors which, together with
HICL, will own 15.1% of Altitude Infra. Altitude Infra holds a
controlling position in the largest independent wholesale fibre
network in France, Altitude Infra THD. The Altitude Infra stake
will be acquired from Altitude Group, which will retain a majority
shareholding. The investment is accretive to HICL's key portfolio
metrics, enhances portfolio diversification and improves the
earnings profile of the Company. Following completion, the
investment will represent approximately 2% of HICL's portfolio, by
value(1) .
Altitude Infra is a leading owner/operator in the French
fibre-to-the-home ("FTTH") market, with a c. 30% market share of
the fibre footprint in the Public Initiative Networks (PIN) areas.
It owns and operates 27 separate infrastructure networks awarded
under the PIN scheme which together cover more than 5 million homes
across France. Altitude Infra is the sole wholesale provider of
FTTH fibre in its subsidised rural networks and has completed c.70%
of its fibre roll-out target, with the remaining roll-out
responsibilities shared between local authorities and Altitude
Infra. Management of the roll-out (where appropriate) and ongoing
operations is delivered through Altitude Infra's wholly owned
project management and operations capabilities. The investment does
not have any near-term refinancing risk.
France has an attractive market framework, underpinned by a
national initiative to meet full FTTH rollout by 2025 and regulated
by ARCEP, the French telecom regulator. Altitude Infra earns
inflation-linked wholesale revenues generated from the sale of its
broadband and network services to Internet Service Providers such
as Free, Bouygues Telecom, Orange and SFR under an ARCEP tariff
structure.
The investment will be funded by HICL's GBP650m Revolving Credit
Facility ("RCF") with completion expected in Q2 2023.
In addition, the Company is in advanced negotiations to sell an
existing investment and has granted a short period of exclusivity
to a third-party bidder. The accretive disposal is expected to
generate proceeds to materially fund the investment in Altitude
Infra. Following completion of the disposal and the acquisitions of
Altitude Infra and Texas Nevada Transmission (announced September
2022) the balance on HICL's RCF is expected to be c. GBP400m.
Active portfolio rotation remains an important lever for HICL to
enhance portfolio construction, and it provides both a valuable
source of funding outside of financial markets and evidence of the
robustness of HICL's investment portfolio valuation.
Edward Hunt, Head of Core Income Funds at InfraRed said:
"InfraRed is delighted to have added a second high-quality
communications investment to HICL's portfolio. The investment
benefits from highly attractive core infrastructure attributes,
with predictable inflation-linked revenues under a mature and
regulated wholesale market framework. We are excited to be
partnering with an operator of such high quality and strong market
standing."
1. As at 31 December 2022, using the Directors' Valuation
-ends-
Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800 / info@hicl.com
Edward Hunt
Helen Price
Mohammed Zaheer
Teneo +44 (0) 20 7420 3169 / HICL@teneo.com
Haya Herbert-Burns
Matthew Thomlinson
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)
InfraRed Capital Partners is an international infrastructure
investment manager, with more than 180 professionals operating
worldwide from offices in London, New York, Sydney and Seoul. Over
the past 25 years, InfraRed has established itself as a highly
successful developer and custodian of infrastructure assets that
play a vital role in supporting communities. InfraRed manages
US$14bn+ of equity capital(1) for investors around the globe, in
listed and private funds across both income and capital gain
strategies.
A long-term sustainability-led mindset is integral to how
InfraRed operates as it aims to achieve lasting, positive impacts
and deliver on its vision of Creating Better Futures. InfraRed has
been a signatory of the Principles of Responsible Investment since
2011 and has achieved the highest possible PRI rating(2) for its
infrastructure business for seven consecutive assessments, having
secured a 5-star rating for the 2021 period. It is also a member of
the Net Zero Asset Manager's Initiative and is a TCFD
supporter.
InfraRed is part of SLC Management, the institutional
alternatives and traditional asset management business of Sun Life.
InfraRed represents the infrastructure equity arm of SLC
Management, which also incorporates BentallGreenOak, a global real
estate investment management adviser, and Crescent Capital, a
global alternative credit investment asset manager.
www.ircp.com
(1) Data as at Q3 2022. Equity Capital is calculated using a
5-year average FX rate
(2) Principles for Responsible Investment ("PRI") ratings are
based on following a set of Principles, including incorporating ESG
issues into investment analysis, decision-making processes and
ownership policies. More information is available at
https://www.unpri.org/about-the-pri
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END
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