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Performance Update

3i Infrastructure plc (“3i Infrastructure” or “the Company”) is a long-term investor in infrastructure businesses and assets. This statement relates to the period from 1 October 2016 to 31 December 2016 (the “period”).

3i Infrastructure plc (“3i Infrastructure” or “the Company”) is a long-term investor in infrastructure businesses and assets.  This statement relates to the period from 1 October 2016 to 31 December 2016 (the “period”).

Highlights

  • During the period, the Company completed two new transactions:
    • The Company announced on 8 December 2016 that it had completed the acquisition of 100% of Infinis plc and its subsidiaries (“Infinis”), investing £185 million.
    • The Company committed to invest €6.5 million in the A27/A1 primary Public Private Partnership (“PPP”) project in the Netherlands, which reached financial close on 5 October 2016.
  • The portfolio continues to perform in line with expectations overall, and the newer portfolio companies are performing well since acquisition. Portfolio income totalled £19.2 million in the period. Non-income cash of £5.6 million was also received.
  • Following completion of the Infinis acquisition, the Company has invested all of the proceeds from its capital raise in June 2016. 3i Infrastructure continues to maintain an efficient balance sheet, with ongoing liquidity available through its Revolving Credit Facility (“RCF”). At 31 December 2016, the Company held £54 million in cash and the RCF was £140 million drawn including £30 million for letters of credit, leaving an undrawn balance of £160 million. The Company has the ability to seek to increase the Facility by up to a further £200 million.
  • The Company is on track to deliver its target dividend of 7.55p per share for FY2017.
  • The Investment Adviser continues to develop its pipeline of new investment opportunities across the Company’s focus markets of economic infrastructure and greenfield projects.

Richard Laing, Chairman of 3i Infrastructure, said: “The Board is pleased with the performance over the period. Since October, the Company has secured two attractive new investments, further diversifying the portfolio. All of the proceeds from the equity raise have now been invested.”

Investment activity

On 5 October 2016, a consortium comprising 3i Infrastructure, Heijmans Capital and Fluor Infrastructure reached financial close for the A27/A1 primary PPP project between Utrecht North, Eemnes junction and the Bunschoten-Spakenburg interchange. Financial close follows the provisional awarding of the project announced on 30 June 2016. The project’s contract value amounts to approximately €220 million (including management and maintenance for a period of 25 years). 3i Infrastructure has committed to invest €6.5 million.

On 8 December 2016, 3i Infrastructure completed the acquisition of 100% of Infinis, investing £185 million. The transaction was announced on 31 October 2016. Infinis is the leading generator of electricity from landfill gas in the UK. At 30 June 2016, Infinis had 121 operating sites and 7 outsourced sites geographically dispersed across the UK and had power generation installed capacity of over 300MW. In connection with the transaction, BNP Paribas Fortis S.A./N.V., Lloyds Bank PLC and The Royal Bank of Scotland have provided a committed financing facility for the purposes of refinancing during 2017 the outstanding 7.0% senior notes due 2019 issued by Infinis.

These two transactions are good examples of the Investment Adviser’s ability to source and execute investments for the Company in mid-market economic infrastructure assets and greenfield projects, capable of delivering resilient cash flows and returns in line with the Company’s objectives.

Portfolio returns

The Company's portfolio overall continues to perform in line with expectations. ESVAGT experienced weaker trading conditions in the oil and gas sector in the period but is continuing to see a good pipeline of new opportunities in the offshore wind sector.

Portfolio income (dividends, interest receivable and any fees received from portfolio assets) totalled £19.2 million in the period, against £14.5 million in the quarter to 31 December 2015. Non-income cash received in the period totalled £5.6 million, compared to £0.9 million in the same quarter last year. The increase reflects the contribution of the investments completed since the beginning of the financial year.

Balance sheet

At 31 December 2016, the Company had £54 million of cash and had drawn £140 million on its RCF, including £30 million for letters of credit. The remaining undrawn RCF facility totalled £160 million.

-Ends-

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For information please contact:

Richard Laing
Chairman, 3i Infrastructure plc
+44 1534 847 410

Thomas Fodor
Investor enquiries
+44 20 7975 3469

Kathryn van der Kroft
Media enquiries
+44 20 7975 3021

About 3i Infrastructure plc

3i Infrastructure plc is a Jersey-incorporated, closed-ended investment company, listed on the London Stock Exchange and regulated by the Jersey Financial Services Commission. The Company is a long-term investor in infrastructure businesses and assets. The Company’s market focus is on economic infrastructure and greenfield projects in developed economies, principally in Europe, investing in operating businesses and projects which generate long-term yield and capital growth.

3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised and regulated in the UK by the Financial Conduct Authority and acts as Investment Adviser to 3i Infrastructure plc.

This press release is not for distribution (directly or indirectly) in or to the United States, Canada, Australia or Japan and is not an offer of securities for sale in or into the United States, Canada, Australia or Japan. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or an exemption from registration under the Securities Act. Any public offering to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and will contain detailed information about 3i Group plc, 3i Infrastructure plc, 3i India Infrastructure Fund and management, as applicable, as well as financial statements. No public offering in the United States is currently contemplated.

This statement aims to give an indication of material events and transactions that have taken place in the period from 1 October 2016 to 31 December 2016 and their impact on the financial position of 3i Infrastructure plc. These indications reflect the Board's current view. They are subject to a number of risks and uncertainties and could change. Factors which could cause or contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within the portfolio of 3i Infrastructure plc.

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