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24 May 2021
HICL Infrastructure PLC
("HICL" or "the Company" and, together with its subsidiaries, "the Group"), the London-listed infrastructure investment company managed by InfraRed Capital Partners Limited ("InfraRed" or "the Investment Manager".)
HICL secures £400m Sustainability-linked SONIA credit facility
The Board of HICL is pleased to announce that the Company has successfully renegotiated its £400m revolving credit facility ('RCF') used to support the acquisition of new investments. The innovative facility incorporates defined sustainability targets, converting the facility to a Sustainability Linked Loan.
The facility links interest charged to HICL's performance in relation to environmental, social and governance ('ESG') matters. Specifically, HICL will incur a premium or reduction to the interest charged on the RCF based on performance against the following ESG targets:
· Environmental:
o Increasing the percentage of portfolio companies with energy, water and waste reduction initiatives in place
o Increasing the percentage of portfolio companies reporting Scope 1 and 2 greenhouse gas emissions
o Reducing Scope 3 greenhouse gas emissions
· Social: Increasing the percentage of portfolio companies making voluntary charitable contributions, supporting local community engagement
· Governance: Maintaining a low rate of RIDDORs1 across the portfolio, a key health and safety metric for HICL
Performance against these targets will be measured annually, with the cost of the RCF being adjusted for the following year. Overall, the margin on the RCF can vary between 164bps and 170bps over SONIA for GBP drawings.
The facility duration is two years through to 31 May 2023. The consortium of lenders comprises Crédit Agricole, HSBC, ING, Lloyds, National Australia Bank, Royal Bank of Scotland International, Santander and Sumitomo Mitsui Banking Corporation.
Harry Seekings, Head of Infrastructure at InfraRed Capital Partners Limited, said: "This innovative sustainability-linked SONIA facility is one of the first in the market, highlighting HICL's continued commitment to providing sustainability leadership in the sector."
Ian Russell, Chairman of the Board, said: "The Board is pleased with this further evidence of HICL's sustainability strategy in action, increasing the alignment of long-term financial performance with positive stakeholder outcomes."
1. Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995
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Enquiries
InfraRed Capital Partners Limited +44 (0) 20 7484 1800 / [email protected]
Harry Seekings
Keith Pickard
Edward Hunt
Teneo +44 (0) 20 3757 9257
Haya Herbert-Burns
Investec Bank plc +44 (0) 20 7597 4952
David Yovichic
RBC Capital Markets +44 (0) 20 7653 4000
Matthew Coakes
HICL Infrastructure PLC
HICL Infrastructure PLC ("HICL") is a long-term investor in infrastructure assets which are predominantly operational and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange.
With a current portfolio of 116 infrastructure investments, HICL is seeking further suitable opportunities in core infrastructure, which are inherently positioned at the lower end of the risk spectrum.
Further details can be found on the HICL website www.hicl.com.
Investment Manager (InfraRed Capital Partners)
The Investment Manager to HICL is InfraRed Capital Partners Limited ("InfraRed") which has successfully invested in over 200 infrastructure projects since 1997. InfraRed is a leading international investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, New York, Mexico City, Seoul and Sydney. With over 160 professionals it manages in excess of US$12bn of equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed is authorised and regulated by the Financial Conduct Authority.
The infrastructure investment team at InfraRed consists of over 90 investment professionals, all with an infrastructure investment background and a broad range of relevant skills, including private equity, structured finance, construction, renewable energy and facilities management.
InfraRed implements best-in-class practices to underpin asset management and investment decisions, promotes ethical behaviour and has established community engagement initiatives to support good causes in the wider community. InfraRed is a signatory of the Principles of Responsible Investment.
Further details can be found on InfraRed's website www.ircp.com.
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