HSBC Infrastructure in share offer

The infrastructure investor has issued 750,000 new shares in return for cash at a price of 109.9 pence each before expenses. HSBC said the funds raised, £82.4m in total, will go towards 'general corporate purposes'.

HSBC Infrastructure Company Limited (HICL) revealed to the London Stock Exchange this morning that it has issued 750,000 new shares in return for cash, raising £82.4 million (€96 million; $134 million).

The new shares of 0.01p each in the company were issued at a price of 109.9 pence each before expenses. HICL would only say that the net proceeds from the sale will be used for “general corporate purposes”.

The new shares are expected to begin trading on the London stock exchange on 8 August.

In May the infrastructure investor made a loss of £22 million for the full year on the back of a £42.4 million capital loss which is attributed to lower valuations of its holdings. It nevertheless increased its annual dividend by 2.4 percent.

At the end of March HICL’s directors valued its portfolio, which comprises 27 PPP projects in the UK and the Netherlands and a mezzanine debt loan behind the Thames Water acquisition, at £445.7 million.