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On 21 July 2023, HICL Infrastructure PLC completed the acquisition of a 75% shareholding in the Hornsea II OFTO assets. This investment, HICL's fifth OFTO in partnership with Diamond Transmission Corporation, represents approximately 3% of HICL's portfolio by value. The acquisition was funded by HICL's £650m revolving credit facility, which is now expected to be drawn by approximately £370m following this transaction and a partial disposal.
| Date | 21 Jul 2023 |
| Time | 07:00:02 |
| Category | Acquisitions and alliances |
| ID | 6999G |
21 July 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".)
Completion of announced Hornsea II OFTO transaction
Further to earlier announcements, the Board of HICL Infrastructure PLC is pleased to confirm that the Company has now completed the acquisition of a 75% shareholding in the offshore transmission assets associated with the Hornsea II Windfarm (Hornsea II OFTO). This availability-based and inflation-linked investment in critical UK electricity transmission represents HICL's fifth OFTO investment in partnership with Diamond Transmission Corporation.
The investment will represent approximately 3% of HICL's portfolio by value1 and will be funded by the Company's £650m revolving credit facility ("RCF"). Following this transaction and the receipt of proceeds from the partial disposal of Northwest Parkway, the RCF is expected to be c.£370m drawn. The Company intends to continue its strategy of selectively realising assets to reduce the RCF balance and optimise portfolio construction.
1 As at 31 March 2023, using the Directors' Valuation of £3,772.8m
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Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800 / [email protected]
Edward Hunt
Helen Price
Mohammed Zaheer
Brunswick +44 (0) 20 7404 5959 / [email protected]
Sofie Brewis
Investec Bank plc +44(0) 20 7597 4952
David Yovichic
RBC Capital Markets +44 (0) 20 7653 4000
Matthew Coakes
Elizabeth Evans
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 capital1 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 rating2 for its infrastructure business for seven consecutive assessments, having secured a 5 stars 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.
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 observation of the PRI Association's 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