HICL beats target with £250m fundraising

The London-listed infrastructure investment vehicle exercised its right to increase its equity capital raising from an original target of £180m to £250m in the face of strong investor demand. The money will be used to pay down debt and fund new acquisition opportunities.

HICL Infrastructure Company (HICL), the London Stock Exchange-listed infrastructure investment vehicle, has raised £250 million (€299 million; $400 million) from a placing, open offer and offer for subscription of C shares which it launched at the end of February.

The firm had originally set out to raise £180 million before expenses, but said it reserved the right to increase the size of the issue to a maximum of £250 million “in circumstances in which additional investments are made or identified and overall demand for C shares exceeds the target amount”.

“We are delighted with the success of the offer which was significantly oversubscribed,” said HICL chairman Graham Picken in a statement. “In light of the current pipeline of advanced-stage acquisition opportunities, the board is pleased to increase the size of the issue to £250 million.”

Investment bank Liberum Capital said in its own statement: “That HICL has raised such a large amount is impressive and underlines investor appetite for yield in the current low interest rate environment.”

HICL has 70 PFI and PPP investments in its portfolio in total. It is advised by InfraRed Capital Partners, which spun out from HSBC in April last year and closed an oversubscribed $1.2 billion fund focusing on greenfield infrastructure in October last year.