3rd Mar 2025 12:15
(Alliance News) - HICL Infrastructure PLC on Monday launched a new share buyback programme worth GBP100 million, after a GBP50 million buyback completed last week.
The London-based closed-ended investment company said the new programme will start on Monday and complete by December 31.
The buyback has been launched in light of the "significant discount" to net asset value at which HICL's shares have continued to trade, it said.
In an interim statement on Monday, HICL said operational performance across the portfolio was in line with expectations in the period from October 1.
The firm said it is targeting divestments in excess of GBP200 million in the coming year to fund the buyback expansion and existing investment commitments of around GBP110 million.
HICL Infrastructure said it is prepared to use up to GBP50 million of its revolving credit facility capacity to bridge to the receipt of disposal proceeds.
The company said its GBP400 million revolving credit facility is currently undrawn and matures at the end of June 2026. It said it has started discussions to extend the term of the facility, which are expected to conclude by May.
It said it is on track to deliver its target dividend of 8.25 pence per share for the financial year to the end of March.
Further dividend guidance will be provided in May.
HICL said following the final determination from water regulator Ofwat for the period from 2025 to 2030, it expects dividends from Affinity Water Ltd to resume during the financial year to the end of March 2026.
It has now formally committed to "support future growth" in Affinity Water with a GBP50 million equity investment, expected to be made before the 2026 financial year.
HICL said inflation for the six months to the end of March is tracking "slightly ahead" of assumptions used in its valuation for the UK and USA, and slightly behind for the Eurozone and New Zealand.
It said if this trend continues, it expects a positive impact on NAV per share of around 0.3 pence.
The company said its underlying portfolio has "remained insulated" from macro and political volatility in the period and "continues to perform well".
"The company is encouraged by the positive political rhetoric in support of private investment in infrastructure, particularly in the UK, and its critical role in delivering much needed economic growth. This approach is expected to benefit existing holdings as well as provide new opportunities for selective investment," HICL said.
HICL chair Mike Bane said: "HICL's high-quality portfolio continues to demonstrate resilient performance despite broader macro and political volatility. The board is pleased to announce an immediate and significant expansion of the company's share buyback programme taking advantage of the weakness in the company's share price. This will be funded by further targeted asset sales and, if necessary in the short term, the company's unutilised revolving credit facility."
Shares in HICL were up 1.2% to 111.87 pence in London on Monday morning.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
HICL Infrastructure