HICL placing raises £167m

The London-listed infrastructure fund manager had to partially scale back what it described as a “significantly oversubscribed” offering.

HICL Infrastructure Company (HICL), the London Stock Exchange-listed infrastructure fund manager, has raised £167.3 million (€196.3 million; $254.1 million) from a placing, open offer and offer for subscription of shares.

The firm said that the offering was “significantly oversubscribed” and that a “partial scaling back” had been applied to the applications received.

“We regard this successful capital raising as an endorsement of the company’s strategy and track record of successful delivery,” said Graham Picken, chairman of HICL, in a statement. “The strong demand also reflects the growing importance of infrastructure as an asset class.”

HICL says the proceeds of the issue will be used to meet funding requirements, reduce outstanding group debt and provide the group with further resources to make additional investments.

The company has been active on the acquisitions trail recently. In January it completed the £30.6 million acquisition of a 50 percent equity and loan note interest in the Northwood Ministry of Defence headquarters Private Finance Initiative (PFI) from Carillion Private Finance. Last December, it acquired two PFI portfolios in the schools sector from EISER Infrastructure Partners.