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HICL Infrastructure Closes Two Dutch PPP Acquisitions.

M2 EQUITYBITES-January 10, 2017-HICL Infrastructure Closes Two Dutch PPP Acquisitions

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10 January 2017 - UK-based infrastructure investment company HICL Infrastructure Co Ltd. (LSE: HICL) has acquired equity interests in two Dutch PPP projects from Ballast Nedam, the company said.

This includes a 20% interest in the A9 Gaasperdammerweg Road Project in the Netherlands and an incremental 25% interest in the Zaanstad Penitentiary Project.

The total consideration of EUR 21.3m (USD 22.55m) includes a loan stock subscription obligation payable following the substantial completion of construction of the A9 Project.

The A9 Project, an availability-based road PPP, has a capital value of EUR 574m and forms part of the Schiphol - Amsterdam - Almere Corridor Programme which is intended to increase the capacity of the motorways to the south and east of Amsterdam.

Construction and maintenance works are being undertaken by a single joint venture contractor comprising Ballast, Heijmans and Fluor, with construction scheduled to be substantially completed in 2018. The concession ends in 2038.

Ballast retains a 5% shareholding and provides management services to the project company.

The Zaanstad Project, an availability-based PPP, comprises the construction and operation of a new correctional facility with a capacity of approximately 1,000 detainees.

The facility reached construction completion in March 2016 and maintenance works are being undertaken by Ballast. Custodial services do not form part of the project's scope of services.

HICL acquired a 75% interest in the Zaanstad Project in March 2015 and with this incremental investment now owns 100% of the equity and loan stock.

The consideration paid for the projects was funded from existing cash resources. The letter of credit associated with the loan stock subscription obligation for the A9 project was provided using the company's existing revolving credit facility.

HICL Infrastructure currently has a funding surplus of approximately GBP6m but also has commitments of approximately GBP 200m in aggregate in respect of the conditional acquisitions of the A63 motorway project and Northwest Parkway, which were announced during 2016.

Those commitments will become payable upon completion of the respective acquisitions, both of which are expected to occur during the first half of 2017.

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Publication:M2 EquityBites (EQB)
Geographic Code:4EUNE
Date:Jan 10, 2017
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