Interim Management Statement

29 Jan 2010 14:54



29 January 2010

3i Infrastructure plc - Interim Management Statement

3i Infrastructure plc ("3i Infrastructure" or "the Company") is an investment company focusing on infrastructure investment opportunities globally. This Interim Management Statement is issued in accordance with FSA Disclosure and Transparency Rule 4.3. This statement relates to the period from 1 October 2009 to 29 January 2010. 

Highlights 

£39.0 million invested in the period for a 49.9% holding in Elgin, a portfolio of UK PFI assets 

£12.4 million realised in the period, through the disposal of the holding in Novera and the ABP junior debt tranche

Portfolio assets continue to perform satisfactorily, generating good income

Current cash balances of £295.1 million 

Attractive pipeline of investment opportunities

Peter Sedgwick, Chairman of 3i Infrastructure, said: "The Company's portfolio continues to perform satisfactorily, generating good income as anticipated. The investment in Elgin, which holds a portfolio of UK PFI projects, further improves the diversification of the Company's portfolio and will contribute to the deliverability of 3i Infrastructure's yield."

Cressida Hogg, Managing Partner for Infrastructure, 3i Investments plc, added: "The investment in Elgin fits the Company's investment strategy, as well as its geographic and sector focus. It provides exposure to a relatively low-risk, cash-generative and highly attractive asset."

1. Investment

3i Infrastructure today has invested £39.0 million for a 49.9% stake in Elgin Infrastructure Limited ("Elgin"), a company newly incorporated by Robertson Capital Projects Limited ("RCP"). Elgin holds a portfolio of 16 education and healthcare PFI projects in Scotland and Northeast England, 15 of which are fully operational. RCP, a well-established participant in the UK PFI market, will retain a 50.1% stake in Elgin. 

2. Realisations

During the period, the Company completed the sale of its 8.6% equity interest in Novera Energy plc ("Novera"), for a total consideration of £9.6 million, or 77 pence per share. This represents an uplift of £4.0 million over the asset valuation at 30 September 2009, but a loss of £1.6 million compared to the initial investment cost. The holding in Novera was purchased by Infinis Energy Limited, which announced its intention to make an offer for the entire share capital of Novera on 7 October 2009.

In December, 3i Infrastructure also disposed of its junior debt investment in Associated British Ports ("ABP") for a consideration of £2.8 million, representing a £0.4 million uplift over the total investment cost and a £0.2 million uplift over the value at 30 September 2009. While the Company had stated an intention of holding the investments in its junior debt portfolio to maturity, or until they are refinanced, it will consider opportunities to sell these investments before such time at attractive rates of return. 

3. Portfolio and returns

3i Infrastructure's portfolio is performing satisfactorily and is positioned to deliver a robust yield. The valuation of the Company's junior debt portfolio continues to be supported by the positive market backdrop. 

The Final Determination for the regulation of the water sector, affecting the Company's investment in Anglian Water Group Limited ("AWG"), was published at the end of November. The Final Determination was largely consistent with the changes in the valuation of AWG made at the half year and will be reflected in full in the valuation of the asset at 31 March 2010. 

As usual, an important element of the determination of the results for the period to 31 March 2010 will be the valuation exercise carried out on the investment portfolio as at that date. 

3i Infrastructure will issue a pre-close update in late March 2010 and will issue its results for the year to 31 March 2010, including the net asset value as at 31 March 2010, in May 2010. 

4. Balance sheet

Following the completion of the acquisition of Elgin, at 29 January 2010 the Company had cash balances of £295.1 million and no borrowings. There are currently no external borrowings on a recourse basis to the Company. 

Ends

For information please contact: 

3i Infrastructure plc is a Jersey-incorporated, closed-ended investment company that invests in infrastructure businesses and assets and is regulated by the Jersey Financial Services Commission. The Company listed on the London Stock Exchange in March 2007, raising £703 million in an initial public offering and a further £115 million in a subsequent placing and open offer in July 2008. The Company is a constituent of the FTSE 250 index. It aims to build a diversified portfolio of infrastructure investments across the globe, but with an initial focus on Europe, Asia and North America.

3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised and regulated in the UK by the Financial Services Authority and acts as Investment Adviser to 3i Infrastructure plc.

This press release is not for distribution (directly or indirectly) in or to the United States, Canada, Australia or Japan and is not an offer of securities for sale in or into the United States, Canada, Australia or Japan. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or an exemption from registration under the Securities Act. Any public offering to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and will contain detailed information about 3i Group plc, 3i Infrastructure plc, the 3i India Infrastructure Fund and management, as applicable, as well as financial statements. No public offering in the United States is currently contemplated.

This statement aims to give an indication of material events and transactions that have taken place during the period from 1 October 2009 to 29 January 2010  and their impact on the financial position of 3i Infrastructure plc. These indications reflect the Board's current view. They are subject to a number of risks and uncertainties and could change. Factors which could cause or contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within the portfolio of 3i Infrastructure plc.