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”.)
New Long-dated Letter of Credit Facility
HICL is pleased to announce it has agreed an innovative new Letter of Credit Facility (“LCF”) to support the Company's existing and future commitments to projects in construction. The facility is initially sized at £60m in line with the Company's current commitments, with an uncommitted £225m accordion, and a six-year maturity to 31 December 2026 to more appropriately match the long-dated tenor of construction commitments. The use of the LCF in this manner enables greater flexibility for shorter-term deployment within the capacity of HICL's existing £400m Revolving Credit Facility (“RCF”), to support execution of the Company's pipeline.
The new LCF will rank pari passu alongside the current RCF and will be used to issue longer-term letters of credit and, where necessary, draw cash to settle these obligations. The LCF is provided by Sumitomo Mitsui Banking Corporation and ING.
Harry Seekings, Head of Infrastructure at InfraRed, said: “We are pleased to have secured this innovative facility to match the tenor of HICL's longer-dated commitments with an appropriate debt profile, further enhancing the Company's balance sheet. Moreover, this facility provides HICL with additional flexibility to prudently pursue appropriate investment opportunities as they arise.”