HICL Infrastructure PLC (HICL)

[idpickering]

Second Quarterly Interim Dividend

HICL Infrastructure PLC (the "Company") is pleased to announce the second interim dividend for the financial year ending 31 March 2022 of 2.06 pence per ordinary share (the " Q2 Dividend" ).

The shares will go ex-dividend on 25 November 2021 and the Q2 Dividend will be paid on 31 December 2021 to shareholders on the register as at the close of business on 26 November 2021.

As outlined in the Company's prospectus dated 4 March 2019, a portion of the Company's dividends will be designated as an interest distribution for UK tax purposes. The interest streaming percentage for the Q2 Dividend is 59%.

https://www.investegate.co.uk/hicl-infr ... 00075929S/

I hold, and am topping up my holdings today. OK, they're not as cheap as before, but I'm ok with that for a long term hold.

Ian.

[idpickering]

Interim Results 6 Months Ended 30th September 2021

· A strong result in the period, with growth in the Net Asset Value ("NAV") per share of 3.1p, to 155.4p (March 2021: 152.3p).

· Annualised total shareholder return1 of 9.8%, reflecting: value enhancement initiatives across the portfolio; continued evidence of recovery from the Covid-19 pandemic; strong asset pricing in the Company's core geographies; and higher than assumed inflation.

· The outlook for inflation is expected to remain elevated in HICL's core markets, making the inherent inflation correlation of HICL's return, at 0.8x, a key attraction for investors.

· Directors' Valuation2 of the portfolio at 30 September 2021 is £3,121.7m (March 2021: £3,011.9m) on an Investment Basis.

· Pleasing performance from the portfolio in the year to date, delivering an underlying annualised portfolio return of 7.3%, ahead of the weighted average discount rate of 6.8% at March 2021.

· The path to recovery has varied across the three largest demand-based assets. However, all three assets performed in line with the forecasts assumed at 31 March 2021.

· Dividends paid in the period were 4.13p per share (September 2020: 4.12p) and dividend cash cover increased to 1.043 times (September 2020: 0.83 times).

· The Company is on track to deliver a fully cash covered dividend of 8.25p per share for the year to March 2022, in line with its stated target4.

· HICL continues to pay the highest cash dividend in the listed core infrastructure peer group.

· The Board has re-affirmed its dividend guidance of 8.25p per share for the year to 31 March 20234.

· HICL continues to advance its ambitious sustainability strategy, with progress made against the key sustainability metrics set out in the Annual Report 2021.

· HICL's strategy of optimising portfolio composition was demonstrated by the recycling of capital from an opportunistic disposal into accretive incremental acquisitions post period end.

· HICL's vision of delivering social foundations, connecting communities and supporting sustainable modern economies guides the Company's acquisition focus, and InfraRed is progressing a strong, advanced pipeline across both traditional and emerging core infrastructure sectors.

· The Board continues to be encouraged by the signs of continued economic recovery from the Covid-19 pandemic, the resilience of the portfolio and the strength of HICL's visible pipeline.

https://www.investegate.co.uk/hicl-infr ... 00063403T/

[idpickering]

Kepler Trust Intelligence: New Research

Cash covered dividend and link to inflation underlines HICL's appeal…

The investment companies team at Kepler Trust Intelligence has produced a new piece of investment bank quality research about the trust, designed to provide a clear and comprehensive reference for long term investors. This note is free to read for UK investors.

https://www.investegate.co.uk/hicl-infr ... 00073670W/

I hold, but am unlikely to top up my holdings any time soon as they're a bit pricey currently imho. A handy share to add diversification to my 28 share HYP, of which HICL make up 2.8% in capital value terms, of my HYP.

Ian.

[idpickering]

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."

https://www.investegate.co.uk/hicl-infr ... 30326745W/

[idpickering]

Interim Update Statement

Key Highlights

On track to deliver a cash covered dividend for the year ending 31 March 2022 of 8.25p per share in line with previous guidance1.

Accretive acquisition activity in the period, with cash investments of £78m .

HICL's PPP and regulated portfolios performed in line with expectations during the period. Recovery continues across HICL's demand-based segment, which was not materially impacted by the emergence of the Omicron variant.

InfraRed has developed a well-advanced pipeline across both traditional and evolving core infrastructure sectors in line with the previously stated strategy. This is supported through the successful development of partnerships to secure preferential access to consistent deal flow .

And;

inancial Performance and Dividends

HICL's resilient portfolio continued to perform well in the period and the Company is on track to deliver a strong performance for the full year.

The Company remains on track to deliver its target dividend of 8.25p per share for the financial year to 31 March 20221, and the Board reiterates a target dividend of 8.25p per share for the financial year to 31 March 20231. The Company expects the dividend for the year to 31 March 2022 to be cash covered.

Considering the current inflation environment, the Company is reviewing the appropriateness of its short-term inflation assumptions ahead of its year-end. The Company is well placed to deliver increased returns in a higher inflationary environment due to its strong inflation correlation, where HICL's return would increase from 6.6% to 7.4% if inflation was 1% higher in all future periods2.

Although the environment for infrastructure investment remains extremely competitive, current evidence indicates that HICL's weighted average discount rate remains appropriate.

https://www.investegate.co.uk/hicl-infr ... 00044540D/

[idpickering]

Proposed Disposal of Queen Alexandra Hospital.

Extraordinary General Meeting for the Proposed Disposal of Queen Alexandra Hospital

Following a competitive auction process, the Board is pleased to announce that HICL has conditionally agreed to dispose its 100% interest in the Queen Alexandra Hospital PFI Project ("QAH") to InfraRed European Infrastructure Income Fund 4 ("EIIF 4" ) . This disposal is in line with the Company's stated strategy to deliver shareholder value and optimise portfolio composition through periodic disposals. The transaction is accretive to key portfolio metrics.

Proceeds to HICL will be c. £108 m, with profits from the sale representing a 1.5 pence per share increase on NAV relative to HICL's valuation at 30 September 2021.

HICL invested in QAH in 2010. QAH is a flagship, acute public hospital with over 7,200 staff and 1,200 beds, that serves over 675,00 residents across Portsmouth and south-east Hampshire. QAH was built and then managed by Carillion plc. Following the liquidation of Carillion plc in 2018, HICL, via the Investment Manager, assumed responsibility for the construction and facility management risk associated with the project. Between 2018 and 2021, InfraRed transitioned QAH to a new facilities management provider, EQUANS, and finalised the resolution of all the outstanding contractual obligations with the client, the project's lenders and EQUANS. By working collaboratively with all the key project stakeholders, the Investment Manager was able to successfully stabilise and de-risk the project. InfraRed's active asset management strategy for QAH over the last four years is a key contributor of the uplift in NAV per share recognised on disposal. The sale to EIIF4 will see long-term continuity of InfraRed's management of the asset.

https://www.investegate.co.uk/hicl-infr ... 00066712G/

I hold HICL, and imho losing QAH is a shame. I was proud to own an interest in the hospital. I am happy to just let the HICL managers just do their jobs though.

Ian.

[Walkeia]

Hi,

International Public Private Partnership is raising money at 159.5p so the share price has come off a little. From first glance HICL and INPP look very similar.

Does anyone have a strong view on either. I’ll post back in a few days more comprehensive thoughts when I have fully had chance to read up on them both but I thought I’d ask the communities views as well.

I would potentially be adding the names to my income holdings.

Thank you

[idpickering]

Acquisition Activity - First German Investment.

HICL is pleased to announce that it has acquired its first investment in Germany, a 50% equity interest in the B247 Mühlhausen-Bad Langensalza Road PPP (the "B247" or the "Project"). The interest was acquired from Vinci Concessions Deutschland GmbH ("VINCI"), paving the way for future partnership on the German road PPP pipeline. HICL's total investment into the Project will amount to c. EUR 12.0m.

The B247 is a new 22km road that will link the cities of Mühlhausen and Bad Langensalza, in the Land of Thuringia. The 30-year PPP covers the design, financing, construction, maintenance and operation of the B247. The Project reached financial close in September 2021 and construction is expected to be completed by VINCI Group companies in June 2025. The client is the Federal Republic of Germany.

As a greenfield availability PPP investment in a AAA-rated European jurisdiction, the Project sits both within HICL's investment strategy and HICL's vision to connect communities. The investment is accretive to key portfolio metrics and will be funded by HICL's existing credit facilities.

Edward Hunt, Head of Core Income Funds at InfraRed said:

"The successful delivery by InfraRed of over ten assets through construction and into operations for HICL's clients has been a strong source of outperformance for the Company's shareholders since IPO. We are pleased to be embarking on the delivery of the B247 Road in Germany, alongside a high-quality partner in VINCI. The B247 Road will be a key transport corridor: linking communities and supporting economic growth in the region; reducing congestion for residents; and improving road safety."

https://www.investegate.co.uk/hicl-infr ... 00076822L/

[idpickering]

Acquisition - First Fibre Broadband Investment.

The Board is pleased to announce that HICL has acquired its first fibre broadband investment through the acquisition of a 55% shareholding in ADTIM SAS ("ADTIM" or "the Project") in France from DIF Capital Partners from its DIF CIF I fund. Following completion, ADTIM will represent approximately 2% of HICL's portfolio, by value1. This is HICL's first fibre broadband investment and the third fibre broadband investment made by InfraRed-managed funds in Europe.

ADTIM is an independent wholesale fibre network providing low density rural areas in the South of France with 18,300km of critical fibre-to-the-home ("FTTH") broadband infrastructure. Procured under France's 2012 Ultra-Fast Broadband Plan, ADTIM is the sole wholesale provider of this subsidised rural network, with pricing regulated by ARCEP, the French telecom regulator. This essential infrastructure benefits from long-term predictable cash flows and high barriers to entry, placing the asset at the lower end of the infrastructure risk spectrum. The investment is accretive to key portfolio metrics.

ADTIM has been awarded two concession contracts by the local authority, under the French Public Initiative Networks ("PIN") scheme, to operate two infrastructure networks providing broadband access to telecom operators serving the residential and business retail markets in the Drôme and Ardèche area:

· PIN 1: 2,300km of fibre under a 25-year concession awarded in 2008, which has been fully operational since 2011; and

· PIN 2: 16,000km of fibre in 640 municipalities, under a 19-year concession awarded in 2016 to deploy and operate c. 350k FTTH lines by 2025. This PIN remains in deployment phase ('roll-out') with delivery obligations to remain with the local authority.

https://www.investegate.co.uk/hicl-infr ... 00070239M/

[idpickering]

Fourth Quarterly Interim Dividend.

HICL Infrastructure PLC (the "Company") is pleased to announce the fourth interim dividend for the financial year ending 31 March 2022 of 2.07 pence per ordinary share (the " Q4 Dividend" ).

The shares will go ex-dividend on 26 May 2022 and the Q4 Dividend will be paid on 30 June 2022 to shareholders on the register as at the close of business on 27 May 2022.

As outlined in the Company's prospectus dated 4 March 2019, a portion of the Company's dividends will be designated as an interest distribution for UK tax purposes. The interest streaming percentage for the Q4 Dividend is 53%.

Dividend Re-investment Plan

The Dividend Re-investment Plan offers a convenient way for shareholders to build up their shareholding by using their dividend to purchase additional shares. The plan is provided by Link Asset Services, a trading name of Link Market Services Trustees Limited which is authorised and regulated by the Financial Conduct Authority. Shareholders who wish to participate in the Dividend Re-investment Plan should submit their election to Link Asset Services by 17:00 on 2 June 2022.

For more information and an application pack please call 0371 664 0381. (Lines are open between 09:00 - 17:30, Monday to Friday excluding public holidays in England and Wales). Alternatively, you can email shares@linkgroup.co.uk or log on to the Share Portal.

https://www.investegate.co.uk/hicl-infr ... 00050251M/

Ian.

[idpickering]

Annual Results for the year ended 31 March 2022.

Highlights

For the year ended 31 March 2022

· 12.8% Total Shareholder Return1 for the year (2021: 5.5%) reflecting strong financial and operating performance, and 9.0% for the 16 years since IPO, which demonstrates the resilient and defensive nature of HICL's investment proposition in a range of market conditions.

· 10.8p / 7.1% increase in NAV per share to 163.1p (31 March 2021: 152.3p) driven by the portfolio's strong correlation to inflation, the sale of the Queen Alexandra Hospital ("QAH") and the continued competitive pricing of infrastructure assets.

· 9.9% increase in the Directors' valuation2 of the portfolio at 31 March 2022 to £3,311.0m (31 March 2021: £3,011.9m).

· Optimising HICL's portfolio composition to deliver shareholder value:

o Investments in the year of £110.4m with an additional investment agreed post year end in ADTIM SAS.

o Three divestments agreed in the year, generating proceeds of £126.3m.

· FY2022 dividend of 8.25p per share was cash covered at 1.05 times3. HICL's dividend remains the highest cash dividend within the listed core infrastructure peer group.

· FY2023 dividend guidance re-confirmed at 8.25p per share4. The Board has announced guidance for the FY2024 dividend guidance of 8.25p per share4.

· HICL ended the year with a robust balance sheet, supported by a new £400m GBP multi-currency facility announced in April 2022 and the divestment proceeds from QAH. The Company has significant available cash resources to pursue investment opportunities as they arise .

· InfraRed continues to build a strong pipeline of attractive investments for HICL, underpinned by its differentiated capability to source new investments across traditional and modern economy infrastructure sectors. This pipeline includes both incremental acquisitions and greenfield opportunities.

· HICL has also published its Sustainability Report today, which can be found here: https://www.hicl.com/SustainabilityReport2022

Ian.

[idpickering]

Retail Offer by PrimaryBid

HICL Infrastructure PLC ( LON : HICL ) is pleased to announce, a conditional offer for subscription via PrimaryBid (the "RetailOffer")of new Ordinary Shares of 0.01 p each in the Company ("Retail Shares") at an issue price of 169.0 p per new Ordinary Share (the "Issue Price"), being a discount of 3.1 per cent to the closing price on 7 July 2022. The Company is also conducting a placing of new Ordinary Shares (the "Placing Shares") at the Issue Price (the "Placing") as announced earlier today.

The Retail Offer and the Placing are conditional on the new Ordinary Shares to be issued pursuant to the Retail Offer and the Placing (the "Shares") being admitted to to the premium listing segment of the Official List of the Financial Conduct Authority and admitted to trading on the main market for listed securities of London Stock Exchange plc ("Admission"). Admission is expected to take place at 8.00 a.m. on 19 July 2022 . The Retail Offer will not be completed without the Placing also being completed.

The net proceeds of the Retail Offer will restore the Company's Revolving Credit Facility capacity and provide additional resources to support pursuit of the Company's near-term pipeline.

https://www.investegate.co.uk/hicl-infr ... 01058164R/

I hold, but am unlikely to take up this offer. We'll see?

Ian.

[idpickering]

Proposed issue of equity.

- Tap issue of New Ordinary Shares at a fixed price of 169.0 p per Share

- The Issue Price represents a discount of 3.1 per cent. to the closing price of 174.4 pence per Ordinary Share on 7 July 2022 and a 4.9 per cent. premium to the 31 March 2022 ex-div Net Asset Value ("NAV") of 161.1p

- Current FY2023 inflation forecasts would support an uplift of 3.0p to 3.6p to the Company's NAV at 31 March 2022, in line with the NAV sensitivity provided in the FY2022 Annual Results

- The issue proceeds will be applied to restore capacity within the Company's £400m Revolving Credit Facility, and provide additional financial resources to pursue HICL's near-term pipeline

- Latest time and date for receipt of applications is 4.00 p.m. on Thursday 14 July

The Board of HICL Infrastructure PLC (the " Company " or " HICL ") is pleased to announce that it proposes to raise additional equity capital through the issue of new ordinary shares in the capital of the Company (" New Ordinary Shares ") by way of non-pre-emptive tap issuance (the " Issue ").

The New Ordinary Shares will be issued at a price of 169.0p per Share (the "Issue Price" ). The Issue Price represents a discount of 3.1 per cent. to the mid-market closing share price of 174.4p on 7 July 2022 and a premium of 4.9 per cent. to the last reported ex-div NAV of 161.1p (as at 31 March 2022).

The net proceeds of the Issue will restore the Company's revolving credit facility ("RCF") capacity and provide additional resources to support pursuit of the Company's near-term pipeline, as described below.

https://www.investegate.co.uk/hicl-infr ... 00047681R/

Ian.

[idpickering]

Result of the Issue and Retail Offer.

- £160.0m raised through issue of 94,674,560 New Ordinary Shares at an Issue Price of 169.0p, with strong support from both existing and new investors

- Total applications exceeded gross proceeds accepted and a scaling back exercise has taken place

- Issue proceeds to be used to restore capacity within the Company's 400m Revolving Credit Facility and provide additional financial resources to pursue HICL's attractive near-term pipeline

Further to its announcement of 8 July 2022, the Board of HICL Infrastructure PLC (the "Company" or "HICL") is pleased to announce that the Company has raised gross proceeds of £160.0m through the issue of 94,674,560 new ordinary shares in the capital of the Company (the "New Ordinary Shares"), at an Issue Price of 169.0p. There has been strong support for the Issue from both existing and new investors including over £5 million of demand from the Retail Offer through PrimaryBid.

The Board considered the Company's current revolving credit facility ("RCF") capacity as well as HICL's advanced investment pipeline when determining the size of the raise. Total applications exceeded gross proceeds accepted and therefore a scaling back exercise has taken place.

The Company will issue 91,704,291 New Ordinary Shares pursuant to the Issue and 2,970,269 New Ordinary Shares pursuant to the Retail Offer by PrimaryBid.

https://www.investegate.co.uk/hicl-infr ... 00055700S/

Ian.

[idpickering]

New Acquisition - Mobile Towers Investment.

The Board is pleased to announce that HICL has exchanged contracts to acquire a 40% equity interest in Aotearoa Towers Limited ("TowerCo"), a passive mobile tower infrastructure owner, from Vodafone New Zealand Limited ("Vodafone NZ") (the "Transaction"). Following completion of the transaction, TowerCo will represent approximately 7% of HICL's portfolio, by value [1] and is expected to take HICL's portfolio weighting in digital communications infrastructure to c. 9% [2] .

The Transaction, a carve-out of Vodafone NZ's passive mobile tower infrastructure, will create New Zealand's largest independent tower company, with 1,484 wholly owned towers [3] covering 98% of New Zealand's population. TowerCo will own and operate the passive tower infrastructure (e.g. towers, masts, poles), with Vodafone NZ retaining responsibility for the 'active' telecommunications equipment mounted on the towers. Mobile towers are critical infrastructure that underpin mobile connectivity and wireless broadband across New Zealand.

TowerCo will benefit from a long-term, availability-based revenue contract with Vodafone NZ, that is indexed to inflation. The initial term of the agreement is 20 years with the option of two 10-year extensions. The agreement will grant Vodafone NZ access to the passive tower infrastructure in exchange for contractual, inflation-linked access charge payments that are unrelated to usage, and will account for 96% of TowerCo's day-1 revenues. Vodafone NZ has contractually committed to additional sites over the next ten years which will increase TowerCo's asset base and revenues over this period.

This is a strategic and highly attractive digital infrastructure acquisition for HICL. TowerCo's cashflows are underpinned by a long-term contract with a strong corporate counterparty and TowerCo benefits from an entrenched market position with high barriers to entry. The Transaction is expected to be accretive to several of HICL's key portfolio metrics, particularly asset life due to the perpetual nature of the asset, and inflation correlation, which is materially in excess of HICL's portfolio average.

InfraRed has been investing in, and managing, assets in Australia and New Zealand since 2009 and has operated a regional office in Sydney since 2013. This investment is the third investment in New Zealand from InfraRed-managed funds. The Investment Manager was supported on the acquisition of TowerCo by Russell Stanners, as a senior adviser. Russell was previously the CEO of Vodafone NZ for 12 years to 2018.

HICL's investment is being made alongside Northleaf Capital Partners, which is also indirectly acquiring a 40% equity interest in TowerCo. Infratil Limited, an existing shareholder of Vodafone NZ, will retain an indirect equity interest of 20% in TowerCo. Northleaf Capital Partners, through its funds, is also a long-term shareholder in the Northwest Parkway toll road (USA) alongside HICL.

Completion of the Transaction is subject to Overseas Investment Office approval and is anticipated to occur in the second half of 2022. The investment will be funded from the proceeds of HICL's recently completed capital raise and existing credit facilities.

https://www.investegate.co.uk/hicl-infr ... 00077272S/

Ian.

[idpickering]

HICL secures £330m extension to RCF.

The Board of HICL is pleased to announce that the Company has successfully activated a £330m accordion within its revolving credit facility ("RCF"), thereby increasing the Company's overall short-term credit facilities to £730m. The £330m accordion is a one-year facility expiring on 28 July 2023. HICL's increased overall funding capacity will be used to support the immediate pipeline of acquisition opportunities.

The accordion is priced on the same terms as the Company's existing RCF. It is a Sustainability-Linked Loan, incorporating defined sustainability targets where HICL incurs a premium or reduction to the interest charged on the drawings based on performance against Environmental, Social and Governance KPIs . As a result, the margin on the accordion will vary between 162bps and 168bps over SONIA.

Mike Bane, Chair of HICL said:

"HICL has a strong and highly attractive pipeline of high-quality core infrastructure opportunities sourced by InfraRed, our Investment Manager. This accordion provides important additional liquidity for the Company to progress its acquisition strategy."

https://www.investegate.co.uk/hicl-infr ... 00111700U/

Ian.

[monabri]

I had to check what they meant by "accordion", not come across that word "in finance" ...although one might guess from the RNS.


https://www.investopedia.com/terms/a/ac ... eature.asp

"An accordion feature is an option that a company can buy that gives it the right to increase its line of credit with a lender. Companies typically purchase an accordion feature in anticipation of the need for more working capital for possible expansion opportunities. If such opportunities do not materialize, the option can be left to expire without penalty."

[idpickering]

Interim Update Statement.

Mike Bane, Chair of HICL said:

"HICL's considered portfolio composition continues to deliver the defensive benefits of core infrastructure investment, including a high degree of inflation protection, against a challenging macro-economic and geopolitical backdrop. Following a successful equity raise, and extending its credit facilities, HICL is well positioned to continue to pursue its attractive pipeline of high-quality core infrastructure opportunities."

Key Highlights

· Accretive acquisition activity in the period, including ADTIM (Fibre, France), and Aotearoa Towers (Mobile Towers, New Zealand) . New investments signed totalling c. £300m.

· Successful capital raising activity in the period with £160m raised via tap issuance with scale back applied due to the strong level of demand from investors.

· Activated the accordion facility within the Company's Revolving Credit Facility ("RCF"), which increases the Company's credit facilities by £330m to a total of £730m to support the immediate pipeline of acquisition opportunities.

· Higher than expected inflation rates have benefitted the portfolio, with the Manager estimating that, all other things being equal, inflation will contribute an increase in NAV per share of between 3.0 and 3.6 pence to the 30 September 2022 valuation.

· Several attractive investment opportunities at an advanced stage.

Investment Activity

· Completion of the sale of the Company's 100% interest in the Queen Alexandra Hospital PFI Project in May.

· Capital deployment of c. £300m in high quality core infrastructure assets:

o Agreement to acquire a 55% shareholding in ADTIM in France from DIF Capital Partners, HICL's first investment in fibre broadband , in May 2022;

o Agreement to acquire a 40% equity interest in Aotearoa Towers Limited, a passive mobile tower infrastructure owner in New Zealand.

Portfolio Performance

· The Company's PPP portfolio performed well, underpinned by its availability-based and inflation-linked revenues. Asset Management activities remain weighted to managing asset condition, including the oversight of defect remediation works where necessary.

· Affinity Water continues to make a positive contribution to HICL's portfolio performance through its inflation-linked Regulatory Capital Value. Affinity Water published its 2022 Annual Report on 15 July 2022, which noted improved operational performance across a number of key indicators including leakage. Ofwat also published its draft methodology for the 2024 Price Review ("PR24") during the period; both Affinity Water and InfraRed look forward to constructive engagement with the regulator as it seeks to consult on and refine its approach.

· HICL's demand-based asset segment performed in line with expectations. The impact of higher fuel prices on traffic across HICL's toll road investments is being monitored closely but is currently not expected to have a material impact on performance. International train path bookings for High Speed 1 ("HS1") were at 76% of pre-Covid levels for the eight week period to 23 July 2022, slightly ahead of HICL's assumption. Although HS1 experienced some disruption from rail strikes in the UK during the period, the line remained open for Eurostar services and the financial impact is not expected to be material.

Financial Performance and Dividends

· The Company remains on track to deliver its target dividend of 8.25p per share for the financial year to 31 March 20232, with cash generation in the period in line with expectations.

· In July 2022, HICL announced the successful activation of a one-year £330m accordion facility within its RCF. The Company now has credit facilities of £730m. The accordion is priced on the same terms as the RCF, and will allow greater capacity and flexibility for HICL to pursue its attractive near-term pipeline.

· Current inflation forecasts for FY2023 are ahead of the assumptions used by the Company in its March 2022 valuation. Sensitivity analysis provided in HICL's Annual Report 2022 showed that if inflation were 3% above HICL's forecast assumptions for the next 12 months, NAV per Share would increase by 3.6p. Based on current forecasts, the Manager would expect inflation to contribute a NAV per share uplift of between 3.0p and 3.6p to the Company's 30 September 2022 valuation.

· While interest rates have increased since March 2022, the environment for infrastructure investment remains highly competitive and current evidence indicates that HICL's weighted average discount rate of 6.6% remains appropriate.

https://www.investegate.co.uk/hicl-infr ... 00053291U/

Ian.

[idpickering]

Acquisition Activity - UK PPP.

The Board is pleased to announce that HICL has agreed to acquire a minority equity position in Cross London Trains ("XLT") from funds managed by Equitix Investment Management.

XLT is a Public Private Partnership ("PPP") that owns the recently delivered fleet of rolling stock operating on the Thameslink passenger rail route which covers the North-South London commuter rail corridor and serves both Luton and Gatwick airports. Following completion of the transaction, XLT will represent approximately 3%1 of HICL's portfolio by value and will be HICL's third investment in the rail sector, after High Speed 1 and the Dutch High Speed Rail Link.

The fleet has been initially leased under a 20-year availability contract with a revenue underpin from the Secretary of State for Transport. The fleet of 115 Siemens Desiro City Class 700 trains was fully delivered in 2018 and has a strong operational track record. Long term maintenance obligations are retained by the manufacturer, Siemens, under a direct contractual arrangement with the franchise operator, Govia Thameslink Railway (GTR), and therefore sit outside of the project company's delivery obligations.

Completion is expected in Q3 2022 following customary third-party consents. The investment is accretive to key portfolio metrics and will be funded by drawing upon HICL's £730 million corporate credit facility and existing cash resources.

https://www.investegate.co.uk/hicl-infr ... 00065373W/

Ian.

[idpickering]

Acquisition Activity.

The Board is pleased to announce two prospective acquisitions to the Company's portfolio:

· The acquisition of a significant minority shareholding in Texas Nevada Transmission LLC ("TNT"), a US electricity transmission asset; and

· The award of preferred bidder status for the assets associated with the Hornsea II Offshore Wind Farm offshore transmission link (the "Hornsea II OFTO")

The Company will be hosting a short webcast to discuss the TNT acquisition at 3:00pm UK time today. To register for the call and to submit questions, please email HICL@teneo.com.

https://www.investegate.co.uk/hicl-infr ... 00071904Y/

Ian.