Proposed C Share Issue

RNS Number : 7148B

HSBC Infrastructure Company Limited

02 November 2009

 



                            2 November 2009

HSBC Infrastructure Company Limited (the "Company" or "HICL")

Proposed C Share Issue

In the light of the pipeline of potential acquisitions being reviewed by the Investment Adviser, and in order to provide the Company with maximum flexibility when acquiring new investments, the Board of HICL announces its intention to undertake an issue of C Shares by way of a Placing and Offer for Subscription (the "Issue"). The proceeds of the Issue will enable the Company to pay down existing debt and to pursue new investment opportunities to be funded by the Group's undrawn credit facilities and any future tap issues of new shares.

Since the Company was launched in March 2006, the portfolio has delivered capital growth and a progressive dividend, ahead of the original guidance issued at that time. The Directors believe that the Company will continue to meet its investment objectives and provide shareholders with distributions, at levels that are sustainable.

The Company's low correlation to general equities, coupled with a relatively resilient net asset value, has enabled it to play a valuable strategic role within investors' portfolios. The Company has demonstrated strong share price performance over the medium term, trading at a premium to net asset value since April 2009, and has experienced continued demand for its equity, as evidenced by the tap issue of some 35.1m shares in aggregate since June of this year. 

This progress has been based on the performance of the Investment Adviser, whose team of professionals in this asset class provide experience and stability of service, alongside a strong track record.

Collins Stewart and Oriel Securities will act as joint Placing Agents to the Issue.

Full details of the Issue are expected be announced at the time of release of the Company's interim results, which will be on 12 November, with listing of the C Shares anticipated to take place in mid-December.

Enquiries:

HSBC Specialist Fund Management Limited	020 7991 8888
Tony Roper
Keith Pickard
Sandra Lowe
Collins Stewart Europe Limited	020 7523 8000
Robbie Robertson
David Yovichic
Lucy Lewis
Dominic Waters
Oriel Securities Limited	020 7710 7600
Tom Durie
Emma Ormond
M:Communications	020 7920 2330
Ed Orlebar
James Hill

---

 

END

 

 

MSCCKKKKABDDNKN