HSBC Infrastructure plans share issue to fund deals

 

HSBC Infrastructure said on Monday it plans to raise new capital to pay down debt and help fund potential deals it is considering.

The listed infrastructure fund said it plans to issue new C shares via a placing and offer for subscription. Collins Stewart and Oriel Securities will act as joint placing agents, the company said.

The company did not say how much it intended to raise, but will release full details on Nov. 12, when it reports its first-half numbers.

HSBC Infrastructure, which typically buys Private Finance Initiative (PFI) and Public Private Partnership (PPP) assets after construction for their long-term cash flows, had net debt of 52 million pounds ($85.38 million) at the end of July, a figure analysts expect to be now around 40 million pounds. 

The proceeds of the issue will allow the company to pay down existing debt and pursue new deals through its undrawn credit facilities and any future tap issues of new shares. Listing of the C shares is expected to take place in mid-December.

Shares in the company were down 1.1 percent at 112.5 pence at 0817 GMT. ($1=.6090 Pound)