(Alliance News) - HICL Infrastructure PLC on Friday said cash generation from its investment portfolio remains in line with expectations, and the company remains on track to deliver its target dividend for the year ending March 31 of 8.25 pence per share.
The London-based infrastructure investor also reiterated its dividend targets for financial 2021 and 2022 of 8.45p and 8.65p per share, respectively.
"The decisive outcome of the UK general election has eased some of the immediate political pressure on the infrastructure sector. In the context of market expectations of 'lower for longer' interest rates, HICL's diversified portfolio of infrastructure investments continues to produce an attractive, long-term yield for the company's shareholders," Chair Ian Russell said.
HICL Infrastructure, which has a portfolio of over 100 investments, noted the increased activity in the UK infrastructure market following the general election result in December and said that it has also seen an increase in asset pricing in a number of recent eurozone and North American auction processes.
"Both these factors are expected to create downward pressure on the respective UK, Eurozone and North American discount rates, which would be positive for the March 2020 valuation," the company said.
HICL Infrastructure's investment pipeline remains healthy and its investment manager, InfraRed Capital Partners Ltd, continues to assess opportunities with strong cashflow quality and defensive market positions.
Shares in the company were down 1.7% at 168.96p each in London on Friday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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HICL Infrastructure (HICL)