HICL rakes in further £268m

The fresh equity issue builds on the fund’s first open offer in four years held in March as it seeks to finance its investment pipeline.

London-listed infrastructure fund HICL has raised £267.7 million ($346.3 million; €308.4 million) following the conclusion of its latest equity issue.

The firm priced the new shares at 165 pence each after the latest fundraising round was “materially oversubscribed”. The fund’s initial announcement last month ahead of the issue sought to raise about £205 million, approximately the size of its net funding requirement.

HICL also explained it increased the size of the issue with its investment pipeline in mind, which is spread across its targeted sectors and geographies, it said in its annual report released two weeks ago. The firm completed its first investment in the US in February, adding the country to its portfolio spanning the UK, Ireland, France, the Netherlands, Canada and Australia.

Shortly after the deal’s completion, HICL announced its first open offering of shares since 2013 in March, again targeting £205 million. Significant demand led the issue to reach its £260 million ceiling.

“The strong demand for shares in the company, already demonstrated at the time of the formal fundraising in March, has clearly been maintained for this subsequent issue,” said Ian Russell, chairman of HICL. “We will continue to seek out risk-appropriate investments which can enhance the existing portfolio whilst preserving our pricing discipline.”

HICL is set to complete a deal in the coming weeks to sell down a 3.4 percent share of its ownership in Affinity Water to a group of UK local authority pension funds, with expected proceeds of about £25 million. The company clubbed together with DIF and Allianz Capital Partners to buy the water firm for £687 million last month.