3i Infrastructure (3IN)

[idpickering]

FY2023 Q1 performance update

A good start to FY2023

· Increase in NAV per share to 1,406 pence (31 March 2022: 1,321 pence) and total return of 6.6% for the three months to 30 June 2022.

· A resilient quarter from the Private Equity portfolio with strong contributions from Action, AES, Dynatect, MAIT, nexeye (previously known as Hans Anders), SaniSure, Tato and WilsonHCG. 90% of our top 20 Private Equity companies by value grew their earnings to March 2022. The return for the quarter included material reductions in the value of two non-discount consumer companies, Luqom and GartenHaus.

· Very good sales and EBITDA growth from Action in the quarter. Sales for the quarter were €2,061 million, 22% above 2021 and 70% above 2019. EBITDA for the quarter was €263 million, 29% above 2021 and 115% above 2019. Action's LTM operating EBITDA to 3 July 2022 was €991 million.

· Announced the sale of Havea for expected proceeds of c.€540 million, representing a c.50% uplift on the value at 31 March 2022, resulting in an estimated sterling money multiple of 3.0x and IRR of 23%. Completed the sale of Q Holding's QSR division for proceeds of £190 million, meaning our sterling money multiple, including our remaining value in Q Holding, is 2.7x.

· Signed three new Private Equity investments in the quarter and announced a fourth new investment in July 2022. All are expected to complete by the end of Q2 FY2023.

· 3i Infrastructure plc ("3iN") completed the sale of its European projects portfolio to the 3i European Operational Projects Fund for £106 million.

· Recognised a £332 million (or 34 pence per share) gain on foreign exchange in the quarter, net of hedging, as sterling weakened against the euro and US dollar.

https://www.investegate.co.uk/3i-group- ... 00082130T/

Ian.

[Dod101]

FY2023 Q1 performance update

A good start to FY2023

· Increase in NAV per share to 1,406 pence (31 March 2022: 1,321 pence) and total return of 6.6% for the three months to 30 June 2022.

· A resilient quarter from the Private Equity portfolio with strong contributions from Action, AES, Dynatect, MAIT, nexeye (previously known as Hans Anders), SaniSure, Tato and WilsonHCG. 90% of our top 20 Private Equity companies by value grew their earnings to March 2022. The return for the quarter included material reductions in the value of two non-discount consumer companies, Luqom and GartenHaus.

· Very good sales and EBITDA growth from Action in the quarter. Sales for the quarter were €2,061 million, 22% above 2021 and 70% above 2019. EBITDA for the quarter was €263 million, 29% above 2021 and 115% above 2019. Action's LTM operating EBITDA to 3 July 2022 was €991 million.

· Announced the sale of Havea for expected proceeds of c.€540 million, representing a c.50% uplift on the value at 31 March 2022, resulting in an estimated sterling money multiple of 3.0x and IRR of 23%. Completed the sale of Q Holding's QSR division for proceeds of £190 million, meaning our sterling money multiple, including our remaining value in Q Holding, is 2.7x.

· Signed three new Private Equity investments in the quarter and announced a fourth new investment in July 2022. All are expected to complete by the end of Q2 FY2023.

· 3i Infrastructure plc ("3iN") completed the sale of its European projects portfolio to the 3i European Operational Projects Fund for £106 million.

· Recognised a £332 million (or 34 pence per share) gain on foreign exchange in the quarter, net of hedging, as sterling weakened against the euro and US dollar.

https://www.investegate.co.uk/3i-group- ... 00082130T/

Ian.

Thanks Ian. Another of my very steady performers. I bought it because of its spread of businesses and the fact that it has successful European assets. It is doing exactly what it says on the tin. Just what I like.

Dod

[idpickering]

You’re most welcome Dod. I admit to having sniffed around this share myself, but higher yielders,ok maybe to high sic, distract me. This share may be in my portfolio over the coming months though, maybe?

Ian.

[kempiejon]

Ta Ian, I your report actually refers to the parent 3iGroup Plc not 3i Infrastructure (3IN) as per the thread title.

I hold both, looking specifically 3IN they make little, fuss the yield has never been really high but does inch up at 5% CAGR over decades.

For income, the parent, 3i Group plc (iii) is a little more exciting has dividend growth with double digit CAGR had quite a few specials and capital returns and consolidations.

[idpickering]

3i Infrastructure plc completes its investment in GCX.

3i Infrastructure plc has completed its $377 million investment to acquire a 100% stake in Global Cloud Xchange ("GCX"), a leading global data communications service provider and owner of the world's largest private subsea fibre optic network.

The transaction was announced on 17 November 2021 and completed on 2 September 2022 . Additional acquisition debt was raised in March 2022, reducing 3i Infrastructure plc's previously announced equity commitment of $512 million.

GCX trading and cash flow performed strongly in the year to 31 March 2022 and the good momentum in the business has continued into the company's current financial year.

https://www.investegate.co.uk/3i-infras ... 00061831Y/

Ian.

[idpickering]

Pre-close update.

Highlights

· Portfolio performing strongly: Our portfolio has continued to perform robustly and ahead of expectations set at March 2022. 3iN's portfolio demonstrates a positive correlation between inflation, power prices and total portfolio value. In addition, our strategy of identifying resilient companies, positioned to benefit from structural mega-trends, provides the foundation for sustainable value growth and positive real returns across the portfolio. We expect to report growth in net asset value ahead of the Company's target return for the Period.

· No near-term portfolio refinancing exposure: Following the recent refinancing of Tampnet, there are no material refinancing requirements in the portfolio until 2026. Over 85% of our long- term debt facilities are either hedged or fixed rate.

· Extension of 3iN's credit facilities: The Company has extended its existing Revolving Credit Facility ('RCF') of £900 million to November 2025.

· FY23 dividend target: The Company is on track to deliver the FY23 dividend target of 11.15 pence per share, up 6.7% from FY22, which we expect to be fully covered.

· Income exceeded expectations in the Period: Income of £73 million and non-income cash of £25 million were received in the Period, both slightly ahead of expectations. This compares with income of £56 million and no non-income cash received in the same period last year.

https://www.investegate.co.uk/3i-infras ... 00132469B/

Ian.

[idpickering]

Results for the six months to 30 September 2022.

The portfolio has generated outstanding performance, significantly exceeding 3i Infrastructure's target returns. We are also on track to deliver the FY23 dividend target of 11.15 pence per share, which is 6.7% higher than the previous year and expected to be fully covered.

Performance

The Company generated a total return of 9.3% on opening NAV for the first half of the year, substantially ahead of our target return of 8% to 10% per annum. The NAV per share increased to 325.8 pence. The portfolio overall is performing robustly and ahead of expectations. During the period, we were pleased that we completed the acquisition of Global Cloud Xchange ('GCX') and agreed to acquire our co-investor's stake in TCR.

Interim dividend

The Board is announcing an interim dividend of 5.575 pence per share, scheduled to be paid on 12 January 2023 to holders of ordinary shares on the register on 25 November 2022. The ex-dividend date will be 24 November 2022. As an investment trust, the Company is permitted to designate dividends wholly or partly as interest distributions for UK tax purposes. The Board is designating 5.4 pence of the 5.575 pence interim dividend as an interest distribution.

https://www.investegate.co.uk/3i-infras ... 00055967F/

Ian.

[Dod101]

Thanks ian. Not sure why the company would say that 9.3% is 'substantially ahead of our target return of 8% to 10% per annum' considering that it is bang in the middle, but never mind. I am very happy with these results. Good company.

Dod

[Arborbridge]

Thanks ian. Not sure why the company would say that 9.3% is 'substantially ahead of our target return of 8% to 10% per annum' considering that it is bang in the middle, but never mind. I am very happy with these results. Good company.

Dod

Sounds like a slip which reveals someone was relieved to clear the bottom threshold!

Arb.

[idpickering]

Thanks ian. Not sure why the company would say that 9.3% is 'substantially ahead of our target return of 8% to 10% per annum' considering that it is bang in the middle, but never mind. I am very happy with these results. Good company.

Dod

You're welcome Dod, me neither. Thanks for your input.

Ian.

[Dod101]

Thanks ian. Not sure why the company would say that 9.3% is 'substantially ahead of our target return of 8% to 10% per annum' considering that it is bang in the middle, but never mind. I am very happy with these results. Good company.

Dod

You're welcome Dod, me neither. Thanks for your input. I have toyed with adding these to my HYP, but I think I might have enough in the overall insurance sector already?

Ian.

Maybe your reference to insurance was a slip up. This company actually invests in the (mostly) European infrastructure sector, just as the name of the company suggests.

Dod

[idpickering]

Thanks ian. Not sure why the company would say that 9.3% is 'substantially ahead of our target return of 8% to 10% per annum' considering that it is bang in the middle, but never mind. I am very happy with these results. Good company.

Dod

You're welcome Dod, me neither. Thanks for your input. I have toyed with adding these to my HYP, but I think I might have enough in the overall insurance sector already?

Ian.

Maybe your reference to insurance was a slip up. This company actually invests in the (mostly) European infrastructure sector, just as the name of the company suggests.

Dod

You're right Dod thanks. I thought I was commenting on The Direct Line Board. I've corrected the above, just in time lol.

Ian.

[Dod101]

Thanks ian. Not sure why the company would say that 9.3% is 'substantially ahead of our target return of 8% to 10% per annum' considering that it is bang in the middle, but never mind. I am very happy with these results. Good company.

Dod

Sounds like a slip which reveals someone was relieved to clear the bottom threshold!

Arb.

The interesting thing is they repeat this several times in their announcement. The return is actually down on last year's at the same time which was ahead of their target at 10.6%. This year is fine at 9.3% , down I think due to an increase in the discount rate used in their valuations because of the increase in interest rates.

Maybe they used last year's announcement as a template and overlooked this bit. Anyway, it does not matter much.

Dod

[idpickering]

3i Infrastructure plc announces partial syndication of its investment in TCR.

3i Infrastructure plc ("3i Infrastructure" or "the Company") has signed an agreement to syndicate a c.27% stake in TCR to 3i Zephyr, a co-investment vehicle managed by 3i Investments plc and funded by six institutional investors. Completion is expected to take place later this quarter.

TCR is the leading global provider of Ground Support Equipment ("GSE") rental solutions and services, supporting air industry customers in their ground handling processes. The business is present in over 160 airports (compared with 100 at acquisition), with more than 30,000 GSE assets in its rental fleet (compared with 23,000 at acquisition).

3i Infrastructure's holding in TCR will decrease from c.96% to c.69%, for proceeds of c.€220m, in line with the valuation of the stake acquired from funds managed by DWS on 31 October 2022. The proceeds will be used to repay part of the Company's outstanding RCF balance.

Following completion, 3i Investments plc, the Company's Investment Manager, will continue to manage c.96% of TCR.

https://www.investegate.co.uk/3i-infras ... 00045240G/

Ian.

[idpickering]

Change of Registered Office.

3i Infrastructure plc announces that it has appointed Aztec Financial Services (Jersey) Limited as its Jersey administrator with effect from 23 December 2022. In connection with this appointment the registered office of 3i Infrastructure plc will change to 11-15 Seaton Place, St Helier, Jersey, JE4 0QH with effect from that date.

https://www.investegate.co.uk/3i-infras ... 55376797L/

Ian. (No position).

[idpickering]

Q3 Performance update.

Highlights

· Portfolio performing strongly: Overall the portfolio has performed well in the Period , exceeding the expectations we set in September 2022, and continues to deliver strong performance.

· New contracts delivering portfolio company growth: During the Period, strategically important contracts were signed by TCR, Ionisos, GCX, Tampnet and ESVAGT. Infinis and Valorem also made good progress in growing their respective renewable development pipelines.

· Completion of further investment in TCR and partial syndication: Following the completion of the acquisition of DWS's stake in TCR in October, 3iN completed the syndication of a 28% stake for proceeds of c.£190 million in November.

· Portfolio company financings: TCR signed a term loan to repay its revolving credit facility and secured a new capex facility to fund growth projects. Joulz has also raised additional fixed rate debt to repay its revolving credit facility.

· FY23 dividend target: The Company is on track to deliver the FY23 dividend target of 11.15 pence per share, up 6.7% from FY22, which we expect to be fully covered by net income.

· Income exceeded expectations in the Period: Total income and non-income cash of £55 million was received in the Period, ahead of expectations. This compares with total income and non-income cash of £26 million received in the same period last year.

https://www.investegate.co.uk/3i-infras ... 00051901N/

Ian (Still no position).

[idpickering]

Proposed Placing.

Highlights of the Placing

· Proposed Placing at a price of 330 pence per Placing Share, representing:

o a 3.1% premium to the Company ex-dividend net asset value per share as at 30 September 2022 (adjusted for the 5.575p dividend paid to shareholders on the register as at 25 November 2022)

o a 3.4% discount to the closing share price on 3 February 2023 (being the trading date immediately prior to the announcement of the Placing)

· Net proceeds from the Placing will be used partially to pay down drawings on the Company's revolving credit facility ("RCF"), and secure liquidity for future investment

· The Placing Shares will qualify for the final dividend of the financial year ending 31 March 2023, which is expected to be declared in May 2023

· The Placing is expected to close at 12.00 p.m. on 9 February 2023

J.P. Morgan Securities plc (which conducts its UK investment banking business as J.P. Morgan Cazenove) and RBC Capital Markets have been appointed as joint bookrunners in respect of the Placing.

Commenting on today's announcement, Richard Laing, Chair of 3iN, said:

"The Company continues to deliver strong performance and, since its IPO in 2007, 3iN has delivered an annualised total shareholder return of 12.3% to 31 December 2022. There is strong momentum across the portfolio and the Investment Manager has identified significant opportunities to invest further in the portfolio. We are today announcing a Placing partially to pay down drawings on the Company's RCF and secure liquidity for future investment."

https://www.investegate.co.uk/3i-infras ... 00039461O/

Ian (No holding).

[Dod101]

Proposed Placing.

Highlights of the Placing

· Proposed Placing at a price of 330 pence per Placing Share, representing:

o a 3.1% premium to the Company ex-dividend net asset value per share as at 30 September 2022 (adjusted for the 5.575p dividend paid to shareholders on the register as at 25 November 2022)

o a 3.4% discount to the closing share price on 3 February 2023 (being the trading date immediately prior to the announcement of the Placing)

· Net proceeds from the Placing will be used partially to pay down drawings on the Company's revolving credit facility ("RCF"), and secure liquidity for future investment

· The Placing Shares will qualify for the final dividend of the financial year ending 31 March 2023, which is expected to be declared in May 2023

· The Placing is expected to close at 12.00 p.m. on 9 February 2023

J.P. Morgan Securities plc (which conducts its UK investment banking business as J.P. Morgan Cazenove) and RBC Capital Markets have been appointed as joint bookrunners in respect of the Placing.

Commenting on today's announcement, Richard Laing, Chair of 3iN, said:

"The Company continues to deliver strong performance and, since its IPO in 2007, 3iN has delivered an annualised total shareholder return of 12.3% to 31 December 2022. There is strong momentum across the portfolio and the Investment Manager has identified significant opportunities to invest further in the portfolio. We are today announcing a Placing partially to pay down drawings on the Company's RCF and secure liquidity for future investment."

https://www.investegate.co.uk/3i-infras ... 00039461O/

Ian (No holding).

And it would seem that the existing private shareholders will have very little opportunity to participate.

Dod

[idpickering]

Proposed Placing.

Highlights of the Placing

· Proposed Placing at a price of 330 pence per Placing Share, representing:

o a 3.1% premium to the Company ex-dividend net asset value per share as at 30 September 2022 (adjusted for the 5.575p dividend paid to shareholders on the register as at 25 November 2022)

o a 3.4% discount to the closing share price on 3 February 2023 (being the trading date immediately prior to the announcement of the Placing)

· Net proceeds from the Placing will be used partially to pay down drawings on the Company's revolving credit facility ("RCF"), and secure liquidity for future investment

· The Placing Shares will qualify for the final dividend of the financial year ending 31 March 2023, which is expected to be declared in May 2023

· The Placing is expected to close at 12.00 p.m. on 9 February 2023

J.P. Morgan Securities plc (which conducts its UK investment banking business as J.P. Morgan Cazenove) and RBC Capital Markets have been appointed as joint bookrunners in respect of the Placing.

Commenting on today's announcement, Richard Laing, Chair of 3iN, said:

"The Company continues to deliver strong performance and, since its IPO in 2007, 3iN has delivered an annualised total shareholder return of 12.3% to 31 December 2022. There is strong momentum across the portfolio and the Investment Manager has identified significant opportunities to invest further in the portfolio. We are today announcing a Placing partially to pay down drawings on the Company's RCF and secure liquidity for future investment."

https://www.investegate.co.uk/3i-infras ... 00039461O/

Ian (No holding).

And it would seem that the existing private shareholders will have very little opportunity to participate.

Dod

Thanks for your input Dod. Shame about existing private shareholders if that is indeed the case.

Ian.

[pje16]

And it would seem that the existing private shareholders will have very little opportunity to participate.
Dod

Thanks for your input Dod. Shame about existing private shareholders if that is indeed the case.
Ian.

I hold and have heard nothing
The way the market is today they could close below the place price of 330p
currently 333.5p