As announced on 31 January 2013, HICL Infrastructure Company Limited has reported the start of a Placing, Open Offer and Offer for Subscription with a target size of 100 million new Ordinary Shares at an issue price of 119.5p per new Ordinary Share (to raise £119.5 million before expenses).

HICL will first apply the net proceeds of the Issue to repay outstanding debt in full and then, depending upon the amount of proceeds raised, to provide the group with additional resources to make further investments. "Repayment of existing debt will provide the group with greater flexibility in making further investments in the infrastructure market as suitable opportunities arise", according to their statement.

Based on the Investment Adviser's analysis of the Current Portfolio, HICL's Directors believe that an IRR of approximately 7 per cent. is an achievable long-term target in respect of a New Ordinary Share.

HICL Infrastructure

HICL's current Portfolio consists of Infrastructure Equity in 79 Project Companies in the government accommodation, education, health, transport, utilities and law and order sectors. It includes:

• accommodation projects for the UK Home Office, the Health and Safety Executive and the Ministry of Defence;
• a number of hospitals, schools, and police projects;
• a high speed rail project for the Dutch State; and
• highway projects in Canada.

Source: HICL Infrastructure