(Alliance News) - 3i Infrastructure PLC on Friday said it is still on track for its dividend target and has so far experienced only limited disruption from Covid-19.
Shares in 3i Infrastructure were up 11% at 217.00 pence in London on Friday morning.
The Jersey-incorporated infrastructure investor said it is set to pay its 9.20 pence per share dividend target for its financial year ending March 31, a rise of 6.4% from 8.65p per share in financial 2019. The dividend target is fully covered, it said.
On Covid-19, 3i Infrastructure said: "To date, any operational impact has been limited and, currently, all of our portfolio companies are maintaining continuity of service to their customers."
Among investments, airport ground handling equipment business TCR has been hurt by the sharp drop in air travel, but 3i Infrastructure said TCR has "a strong liquidity position, and is taking action to prepare for a scenario of a potentially long period of reduced aircraft movements".
At present, 3i Infrastructure has GBP720 million of total available liquidity and its cash balance on Monday this week was GBP420 million, with its GBP300 million revolving credit facility undrawn. It also has further receivables of approximately GBP199 million due in two equal instalments in December 2020 and December 21, both due unconditionally and result from the disposal of Wireless Infrastructure Group.
Wireless Infrastructure is headquartered in the UK and its sale raised proceeds of around GBP387 million, giving a 27% initial rate of return.
From October 1 to Monday this week, 3i Infrastructure'es total portfolio income and non-income cash was GBP77 million and another GBP3 million is due by the end of March, compared to GBP69 million the year before.
Covid-19's effect on the valuation of 3i Infrastructure's value on March 31 will be assessed, taking into account "individual cashflow effects on portfolio companies as well as broader market pricing considerations".
3i Infrastructure highlighted the completion of Wireless Infrastructure's sale, as well as the sale of its UK projects for GBP193 million, realising a 15% initial rate of return.
Chair Richard Laing said: "We have a strong and liquid balance sheet and a defensive portfolio of businesses providing essential services. This positions us well to withstand these extraordinary circumstances."
By Anna Farley; annafarley@alliancenews.com
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3i Infrastructure (3IN)