2nd Nov 2009 07:00
2 November 2009
HSBC Infrastructure Company Limited (the "Company" or "HICL")
Proposed C Share Issue
In the light of the pipeline of potential acquisitions being reviewed by the Investment Adviser, and in order to provide the Company with maximum flexibility when acquiring new investments, the Board of HICL announces its intention to undertake an issue of C Shares by way of a Placing and Offer for Subscription (the "Issue"). The proceeds of the Issue will enable the Company to pay down existing debt and to pursue new investment opportunities to be funded by the Group's undrawn credit facilities and any future tap issues of new shares.
Since the Company was launched in March 2006, the portfolio has delivered capital growth and a progressive dividend, ahead of the original guidance issued at that time. The Directors believe that the Company will continue to meet its investment objectives and provide shareholders with distributions, at levels that are sustainable.
The Company's low correlation to general equities, coupled with a relatively resilient net asset value, has enabled it to play a valuable strategic role within investors' portfolios. The Company has demonstrated strong share price performance over the medium term, trading at a premium to net asset value since April 2009, and has experienced continued demand for its equity, as evidenced by the tap issue of some 35.1m shares in aggregate since June of this year.
This progress has been based on the performance of the Investment Adviser, whose team of professionals in this asset class provide experience and stability of service, alongside a strong track record.
Collins Stewart and Oriel Securities will act as joint Placing Agents to the Issue.
Full details of the Issue are expected be announced at the time of release of the Company's interim results, which will be on 12 November, with listing of the C Shares anticipated to take place in mid-December.
Enquiries:
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HSBC Specialist Fund Management Limited |
020 7991 8888 |
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Tony Roper |
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Keith Pickard |
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Sandra Lowe |
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Collins Stewart Europe Limited |
020 7523 8000 |
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Robbie Robertson |
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David Yovichic |
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Lucy Lewis |
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Dominic Waters |
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Oriel Securities Limited |
020 7710 7600 |
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Tom Durie |
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Emma Ormond |
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M:Communications |
020 7920 2330 |
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Ed Orlebar |
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James Hill |
Related Shares:
HICL Infrastructure