Interim Management Statement

17 Aug 2007 07:01

3i Infrastructure Ltd17 August 2007 3i Infrastructure Limited - Interim Management Statement 17 August 2007 3i Infrastructure Limited ("3i Infrastructure") is an investment companyfocusing on infrastructure investment opportunities globally. This is the firstInterim Management Statement issued by 3i Infrastructure in accordance with theFSA's disclosure and transparency rules. This statement covers the first periodof trading since flotation of the Company, that is, the period from 13 March2007 to 16 August 2007. Peter Sedgwick, 3i Infrastructure's Chairman, said: "The focus of 3iInfrastructure since the IPO has been to invest the capital raised at flotationin assets that will help secure our target returns for the future. We have madegood progress in this respect. The assets which seeded the initial portfolio atflotation are performing well and these have generated returns in line with ourexpectations." Michael Queen, Infrastructure Managing Partner of 3i Investments plc -Investment Adviser to 3i Infrastructure, commented: "Although market conditionsremain competitive in the infrastructure asset class, we have maintained astrong, global investment pipeline throughout this first period while buildingour investment team capabilities internationally. The recent minority investmentin three of Oiltanking GmbH's subsidiaries, based in Singapore, The Netherlandsand Malta, demonstrates the benefits of our international network as well as ourability to execute transactions across multiple geographies." 1. Investments 3i Infrastructure invested a total of £357m equity in the period to 16 August2007 including the £234m acquisition of the initial portfolio from 3i Group atflotation. The largest investment, after the purchase of the initial portfolio in theperiod was the acquisition of a 45 per cent interest in three Oiltanking GmbHsubsidiaries - Oiltanking Singapore Limited, Oiltanking Amsterdam BV andOiltanking Malta Limited - which provides oil and chemical storage facilities.The consideration for the asset comprised €115m equity from 3i Infrastructureand €190m debt from RBC Capital Markets. I2, the secondary market infrastructure fund acquired by 3i Infrastructure atflotation, has continued to invest strongly, drawing down commitments of £30mfrom 3i Infrastructure during the period. The largest asset acquired by thatfund during the period was The PFI Infrastructure Company plc, a vehicleinvesting in public to private partnership projects throughout the UK. Thermal Conversion Compound Industriepark Hochst GmbH, a company established todevelop, own and operate a waste to energy plant in Germany, has beentransferred to 3i Infrastructure from 3i Group for €10m. As set out in the 3iInfrastructure Prospectus, this investment was made by 3i Group shortly beforethe flotation of 3i Infrastructure. It was not practicable to include it in theinitial portfolio of assets acquired from 3i Group at flotation but was madeavailable for acquisition by 3i Infrastructure after the IPO. 2. Returns Returns on investment for the period to 31 July 2007 are in line with ourexpectations. In November 2007 3i Infrastructure will issue Interim results forthe period to 30 September 2007, including the net asset value as at 30September 2007. 3. Developments at Investment Adviser The Investment Advisory team has continued to build its capabilities in the UKand internationally and has grown the investment team, including the recruitmentof four new investment professionals, one in the UK and three in India, who arefocused on infrastructure investing. Further progress has also been made towardsthe establishment of a dedicated US infrastructure team. 4. Indian infrastructure market An important part of 3i Infrastructure's strategy is to invest in Asianinfrastructure. 3i Group plc signed a Memorandum of Understanding with IndiaInfrastructure Financing Company Limited ("IIFCL") on 12 April 2007. IIFCL wasincorporated in January 2006 as a wholly government owned company for thepurpose of providing financial support to infrastructure projects and facilitiesin India. Investments arising from this partnership will primarily be in power,ports, logistics, airports and road projects in both early-stage and matureinfrastructure operations. This partnership will generate attractiveopportunities to enable 3i Infrastructure to meet its objective for investing inAsian Infrastructure. Ends For information please contact:Michael Queen Managing Partner, Infrastructure, 3i Group plc 020 7975 3572Silvia Santoro Investor enquiries 020 7975 3258Jennifer Letki Press enquiries 020 7975 3190 This statement aims to provide an indication of material events and transactionsthat have taken place during the period from 13 March 2007 to the date ofpublication of this statement as well as their impact on the financial positionof 3i Infrastructure. These indications reflect the Board's current view. Theyare subject to a number of risks and uncertainties and could change. Factorswhich could cause or contribute to such differences include, but are not limitedto, general economic and market conditions and specific factors affecting thefinancial prospects or performance of individual investments within 3iInfrastructure's portfolio. This information is provided by RNS The company news service from the London Stock Exchange