First day of dealings on the Main Market of the London Stock Exchange Placing raising 36.7 million
London (BUSINESS WIRE) - Shares in Infrastructure India plc (LSE:IIP) (LSE:IIPW), a closed-ended investment company providing access to India's fast-growing market for infrastructure assets, begin trading today on the Main Market of the London Stock Exchange.
Infrastructure India is a newly incorporated Isle of Man closed-ended investment company established to provide investors with the opportunity of investing in Indian infrastructure assets. The Company's investment strategy is to provide shareholders with capital growth and income by investing in infrastructure assets, focused specifically on the energy and transport sectors. The IPO creates a listed platform from which the further development of the Company will take place. Rupert Cottrell, Non-Executive Chairman of Infrastructure India was previously a director of The PFI Infrastructure Co plc ("PFI Co"), the UK's first publicly traded PFI infrastructure fund. PFI Co achieved a 34 per cent IRR for initial investors and a 233 per cent total value uplift.
Bloomsbury Asset Management Advisors ("BAMA" or the "Investment Adviser"), headed by Gary Neville - previously at John Laing plc, one of the largest publicly quoted infrastructure investors in the UK at the time - will act as investment adviser, with responsibility for identifying, structuring and monitoring investments and advising on exit strategies.
Andrew Friend, previously CEO of John Laing plc, will act as a senior strategic adviser to the Company. John Laing plc delivered approximately 45 per cent IRR for investors from October 2001 to the date of its acquisition for just over $1bn in December 2006.
The objective of the Company is to ultimately achieve an IRR of 25 per cent per annum. The Company will seek to invest in assets that are expected to generate a base IRR of 15 per cent per annum. It is the Directors' belief that the Company's returns could be raised to the 25 per cent target due to additional potential gains from refinancing, yield compression effects and portfolio management efficiencies, as have been achieved by other listed infrastructure companies.
This has enabled the Group to acquire a 20.5 per cent equity interest (which is expected to adjust to between 6 per cent and 7 per cent after certain dilutions) in Shree Maheshwar Hydel Power Corporation Limited, which was specifically established to solely own and develop a 400MW hydroelectric power project situated in Maheshwar, in the southwestern region of Madhya Pradesh in India. With construction approaching the final stages its management expects that the first turbine will commence operations by June 2009. The project is expected to be one of the largest privately owned hydroelectric projects to be commissioned in India within the next two years. The Group has developed a further investment pipeline of other potential
opportunities with an equity value of approximately Rs11.1bn (approximately $135m). This pipeline includes renewable and conventional power projects, road portfolios and airport assets.
The Company's investment policy, in summary, is as follows: Overall focus? invest at the asset level or via specific holding companies set up to invest in infrastructure projects in India. Such investments are to be primarily focused on the broader sectors of energy and transport Sector weighting? focused on investing in assets close to the commencement of operations, typically within 18 months of planned commercial operation Asset allocation? focus on purely equity investment at the SPV level in infrastructure assets in India Risk diversification? geographical diversification within India and diversification within the project types, counterparty, payment mechanisms and co-investment partners.
Gearing - there will be no gearing at the Company level for at least 18 months from Admission.
Thereafter, should the Directors decide that gearing at a Company level is desirable, it will be limited to no more than 50 per cent of total capital. Gearing at the non-recourse SPV level will typically be at a debt/equity ratio of 70/30, but may rise as markets develop in India Maximum exposures. Single investments will typically represent no more than 30 per cent of the Group's NAV (measured at the time of investment) and not more than 50 per cent of the Group's NAV.
Subject to this, there will be no minimum or maximum stakes that the Company can take in projects although its target size of equity investment in any one entity is likely to be between $10m and $30m On Admission, the Company's share capital will consist of a single class of Ordinary Shares and a separately traded class of Warrants, both to be admitted to the Official List and to trading on the London Stock Exchange's main market for listed securities.
Kaupthing Singer & Friedlander Capital Markets Limited acted as Financial Adviser and Broker to the Company and Smith & Williamson Corporate Finance Limited acted as Sponsor.
Commenting on Company's fundraising and admission to trading on the London Stock Exchange, non-executive chairman of Infrastructure India plc Rupert Cottrell said, "The growth prospects for India provide a compelling rationale for investment in the Indian infrastructure sector at this time. We have put in place a team with extensive experience in infrastructure fund management and a strong track record in value creation.
"The platform we have created will enable us to build a substantial business as the opportunities in our pipeline crystalise.The funds raised will be used to invest in the initial projects we have identified with the expectation that negotiations on other energy and transport projects will reach an advanced stage during the remainder of this year.
"We believe that should the Indian infrastructure market develop similarly to the markets in the UK and European Union equity returns will increase as the infrastructure market matures and we are delighted in the interest that has been shown."
Details of the Placing Placing Price per Share - 100 pence
Number of existing Ordinary Shares - 100
Number of new Ordinary Shares being issued - 36,699,900
Number of Warrants being issued - 7,340,000
Number of Ordinary Shares in issue following the Placing - 36,700,000
Number of Warrants in issue following the Placing - 7,340,000
Net Proceeds of the Placing - 32.9 million
Market Capitalisation on Admission - 36.7 million
The prospectus relating to the admission of the Company to trading on the Official List and the placing of ordinary shares has been submitted to the Financial Services Authority and will soon be available for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at: Financial Services Authority 25 The North Colonnade London E14 5HS Infrastructure India plc
Rupert Cottrell Via Redleaf Communications www.iiplc.com
or
BAMA Gary Neville, +44(0)20-3205-5574 or
Kaupthing Singer and Friedlander Andrew Dawber,
+44(0)20-3205-5000 or
Tom Frost, +44(0)20-3205-5594 or
Paul Wedge, +44(0)20-3205-7529 or
Redleaf Communications Emma Kane / Tom Newman / Henry
Columbine +44(0)20-7822-0200 iif@redleafpr.com
London (BUSINESS WIRE) - Shares in Infrastructure India plc (LSE:IIP) (LSE:IIPW), a closed-ended investment company providing access to India's fast-growing market for infrastructure assets, begin trading today on the Main Market of the London Stock Exchange.
Infrastructure India is a newly incorporated Isle of Man closed-ended investment company established to provide investors with the opportunity of investing in Indian infrastructure assets. The Company's investment strategy is to provide shareholders with capital growth and income by investing in infrastructure assets, focused specifically on the energy and transport sectors. The IPO creates a listed platform from which the further development of the Company will take place. Rupert Cottrell, Non-Executive Chairman of Infrastructure India was previously a director of The PFI Infrastructure Co plc ("PFI Co"), the UK's first publicly traded PFI infrastructure fund. PFI Co achieved a 34 per cent IRR for initial investors and a 233 per cent total value uplift.
Bloomsbury Asset Management Advisors ("BAMA" or the "Investment Adviser"), headed by Gary Neville - previously at John Laing plc, one of the largest publicly quoted infrastructure investors in the UK at the time - will act as investment adviser, with responsibility for identifying, structuring and monitoring investments and advising on exit strategies.
Andrew Friend, previously CEO of John Laing plc, will act as a senior strategic adviser to the Company. John Laing plc delivered approximately 45 per cent IRR for investors from October 2001 to the date of its acquisition for just over $1bn in December 2006.
The objective of the Company is to ultimately achieve an IRR of 25 per cent per annum. The Company will seek to invest in assets that are expected to generate a base IRR of 15 per cent per annum. It is the Directors' belief that the Company's returns could be raised to the 25 per cent target due to additional potential gains from refinancing, yield compression effects and portfolio management efficiencies, as have been achieved by other listed infrastructure companies.
This has enabled the Group to acquire a 20.5 per cent equity interest (which is expected to adjust to between 6 per cent and 7 per cent after certain dilutions) in Shree Maheshwar Hydel Power Corporation Limited, which was specifically established to solely own and develop a 400MW hydroelectric power project situated in Maheshwar, in the southwestern region of Madhya Pradesh in India. With construction approaching the final stages its management expects that the first turbine will commence operations by June 2009. The project is expected to be one of the largest privately owned hydroelectric projects to be commissioned in India within the next two years. The Group has developed a further investment pipeline of other potential
opportunities with an equity value of approximately Rs11.1bn (approximately $135m). This pipeline includes renewable and conventional power projects, road portfolios and airport assets.
The Company's investment policy, in summary, is as follows: Overall focus? invest at the asset level or via specific holding companies set up to invest in infrastructure projects in India. Such investments are to be primarily focused on the broader sectors of energy and transport Sector weighting? focused on investing in assets close to the commencement of operations, typically within 18 months of planned commercial operation Asset allocation? focus on purely equity investment at the SPV level in infrastructure assets in India Risk diversification? geographical diversification within India and diversification within the project types, counterparty, payment mechanisms and co-investment partners.
Gearing - there will be no gearing at the Company level for at least 18 months from Admission.
Thereafter, should the Directors decide that gearing at a Company level is desirable, it will be limited to no more than 50 per cent of total capital. Gearing at the non-recourse SPV level will typically be at a debt/equity ratio of 70/30, but may rise as markets develop in India Maximum exposures. Single investments will typically represent no more than 30 per cent of the Group's NAV (measured at the time of investment) and not more than 50 per cent of the Group's NAV.
Subject to this, there will be no minimum or maximum stakes that the Company can take in projects although its target size of equity investment in any one entity is likely to be between $10m and $30m On Admission, the Company's share capital will consist of a single class of Ordinary Shares and a separately traded class of Warrants, both to be admitted to the Official List and to trading on the London Stock Exchange's main market for listed securities.
Kaupthing Singer & Friedlander Capital Markets Limited acted as Financial Adviser and Broker to the Company and Smith & Williamson Corporate Finance Limited acted as Sponsor.
Commenting on Company's fundraising and admission to trading on the London Stock Exchange, non-executive chairman of Infrastructure India plc Rupert Cottrell said, "The growth prospects for India provide a compelling rationale for investment in the Indian infrastructure sector at this time. We have put in place a team with extensive experience in infrastructure fund management and a strong track record in value creation.
"The platform we have created will enable us to build a substantial business as the opportunities in our pipeline crystalise.The funds raised will be used to invest in the initial projects we have identified with the expectation that negotiations on other energy and transport projects will reach an advanced stage during the remainder of this year.
"We believe that should the Indian infrastructure market develop similarly to the markets in the UK and European Union equity returns will increase as the infrastructure market matures and we are delighted in the interest that has been shown."
Details of the Placing Placing Price per Share - 100 pence
Number of existing Ordinary Shares - 100
Number of new Ordinary Shares being issued - 36,699,900
Number of Warrants being issued - 7,340,000
Number of Ordinary Shares in issue following the Placing - 36,700,000
Number of Warrants in issue following the Placing - 7,340,000
Net Proceeds of the Placing - 32.9 million
Market Capitalisation on Admission - 36.7 million
The prospectus relating to the admission of the Company to trading on the Official List and the placing of ordinary shares has been submitted to the Financial Services Authority and will soon be available for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at: Financial Services Authority 25 The North Colonnade London E14 5HS Infrastructure India plc
Rupert Cottrell Via Redleaf Communications www.iiplc.com
or
BAMA Gary Neville, +44(0)20-3205-5574 or
Kaupthing Singer and Friedlander Andrew Dawber,
+44(0)20-3205-5000 or
Tom Frost, +44(0)20-3205-5594 or
Paul Wedge, +44(0)20-3205-7529 or
Redleaf Communications Emma Kane / Tom Newman / Henry
Columbine +44(0)20-7822-0200 iif@redleafpr.com
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