Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

HICL Infrastructure – new fund raising

HICL Infrastructure is looking to raise between £205-260 million as part of a new capital placing. HICL Infrastructure is a long-term investor in public sector-backed infrastructure projects and is an investment company that we highlighted back in October, when Chancellor Philip Hammond signalled an appetite for increased spending on infrastructure.

Louie French Louie French
03 March 2017

More about HICL Infrastructure

HICL Infrastructure launched in March 2006 and was the first infrastructure investment company to list on the London Stock Exchange. The Company’s investment portfolio has stakes in more than 100 infrastructure projects, which are mainly operational, social and transportation infrastructure schemes, which are backed by public sector clients. The projects typically support the community and provide essential services to the public, across a number of areas. The portfolio has a bias towards UK projects, but over 20% of assets are currently located overseas in Europe, North America and Australasia.

Some of the projects include:

  • The A249 Road in Kent: this road connects the north Kent mainland to the Isle of Sheppey. Previously the only way to cross was via a lifting bridge over the Thames Estuary, which caused significant delays when the bridge was raised. The new road eliminates those delays, improving access to the area
  • Croydon Schools: the aim of this project is to “finance, construct, operate and maintain a secondary school and community library for the London Borough of Croydon”
  • Southmead Hospital, North Bristol NHS Trust: this is a comprehensive redevelopment project. The hospital is state-of-the-art and has 800 beds, a new Accident & Emergency department, 24 theatre suites, multi-storey car parks and a helipad

How to take part – investing in HICL Infrastructure

Infrastructure can be a great addition to a balanced portfolio and often these capital raisings are an opportunity to invest at a relatively attractive valuation.

The target for this fund placing is £205 million with the potential to increase to a maximum of £260 million. The expected timetable is below:

Now – the initial placing is open

11am 17/03/2017 – offer for subscription closes

Midday 21/03/2017 – initial placing closes

22/03/2017 – Results announced 

All subscriptions will need to be made to us by the 16 March following the process below:

  • If you are a client and you would like to invest in HICL Infrastructure via this fund raising, you will need to have cash in your relevant account. You can then email newsletter@bestinvest.co.uk with the amount you would like to invest. There is a dealing fee of £7.50 and so the cash will need to cover this (there is no stamp duty). Please specify which account you would like to hold your investment in – whether it’s your ISA, SIPP or investment account
  • If you are not a client but would like to invest in HICL Infrastructure via this fund raising, you will first need to open an account and deposit the amount you would like to invest in cash. There is a dealing fee of £7.50 and so the cash will need to cover this (there is no stamp duty). Then, please email newsletter@bestinvest.co.uk with the amount you would like to invest, specifying whether you would like to hold your investment in your ISA, SIPP or investment account

Do you have any questions?

If you would like to find out more about HICL Infrastructure, please call in on 020 7189 2400, request a call back or email best@bestinvest.co.uk and a member of our team will be in touch.

Important information

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. This article does not constitute personal advice. Investment trusts are similar to funds in that they provide a means of pooling your money but they are publicly listed companies whose shares are traded on the London Stock Exchange. The price of their shares will fluctuate according to investor demand and changes in the value of their underlying assets. Due to their nature, specialist funds can be subject to specific sector risks. Investors should ensure they read all relevant information in order to understand the nature of such investments and the specific risks involved.