HICL Infrastructure agrees new £275m credit facility

HICL Infrastructure has agreed a new letter of credit facility, it announced on Monday, to support its existing and future commitments to projects in construction.

The FTSE 250 company said the facility was initially sized at £60m, in line with its current commitments, with an uncommitted £225m accordion, and a six-year maturity to 31 December 2026 to match the long-dated tenor of construction commitments.

It said the use of the facility would enable greater flexibility for shorter-term deployment within the capacity of its existing £400m revolving credit facility, to support execution of its pipeline.

The new facility was provided by Sumitomo Mitsui and ING.

“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,” said Harry Seekings, head of infrastructure at HICL’s advisor InfraRed.

“Moreover, this facility provides HICL with additional flexibility to prudently pursue appropriate investment opportunities as they arise.”

At 0912 GMT, shares in HICL Infrastructure were up 0.12% at 172.2p.