HICL Infrastructure issues 100m new shares

Infrastructure investment company HICL on Tuesday announced a placing, open offer and offer for subscription with a target size of 100m new shares at an issue price of 119.5p each.

The transaction is expected to raise £119.5m before expenses, but the issue can be increased to 140m shares to raise £167.3m.

The proceeds of the issue will initially be used to repay its outstanding debt in full, with the remainder put towards further investments.

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"Repayment of existing group debt will provide the group with greater flexibility in making further investments in the infrastructure market as suitable opportunities arise," the company said.

The issue expenses are expected to be around £2.55m.

Under the open offer existing shareholders can subscribe for new ordinary shares on the basis of one new ordinary shares for every 15 ordinary shares held at the close of February 22nd.

The share price fell 1.50p to 125.20p by 13:15 Tuesday.

NR