Infrastructure investment specialist BBGI SICAV is planning an equity fundraise through a share offer to repay outstanding debt.
BBGI, based in Luxembourg, said on Tuesday it plans to offer new shares of up to 10 percent of already issued share capital to repay outstanding borrowings and have cash to pursue its “attractive pipeline of potential investment opportunities”, according to a statement. Broker Numis Securities estimate gross proceeds could reach £58 million ($71 million; €66 million).
The company said the maximum it would price its shares would be a 5 percent premium to its latest stock price. BBGI shares were down 1.8 percent, trading at 139.25 pence on the London Stock Exchange as of Tuesday.
With portfolio of 39 infrastructure projects, BBGI is a closed-ended investment company focusing on road and social infrastructure projects in the UK and continental Europe, Canada, Australia and the US. It said it invests in “availability-based” projects such as schools, hospitals, prisons and highways.
According to its website, BBGI targets an internal rate of return between 7 and 8 percent. It said that no more than 25 percent of its portfolio value would be held in revenue streams that are not public sector or government-backed.