Cash pile grows at 3i Infrastructure

30th Sep 2011 07:20

Cash continues to flow steadily in at 3i Infrastructure, the infrastructure investment company, ensuring that the company's own proposed cash pay-out to shareholders is comfortably covered.In a pre-close trading update for the six months ending 30 September, the group said: "3i Infrastructure's portfolio continues to generate strong income, amply covering the company's interim dividend objective."Against the recent market backdrop, the infrastructure asset class continues to offer good opportunities for investment. We are working to bring the Thameslink transaction to financial close, and are pursuing a number of other attractive opportunities," revealed Cressida Hogg, Managing Partner, Infrastructure, 3i Investments. Cash during the period was boosted by realisation proceeds of £91.2m, of which £35.7m has been banked since the company's July trading update, bringing the cash pile to a total of £310m, up from £248m at 30 June. The major component (£55.5m) of the realisation proceeds was from the sale of junior debt holding and from the full repayment at part of the Thames Water junior debt holding. During the period, the company generated income of £36.7m across its European portfolio with strong contributions from the core infrastructure assets. This more than covers the company's distribution objectives for the half year.The half-year results will be influenced by a number of market factors, the group said, including the valuation of the quoted elements of the portfolio, foreign exchange fluctuations and will benefit from inflation linkage.The mark-to-market valuation of Adani Power Limited has declined as a result of the 23% reduction in its share price in the period, reflecting falls in the Indian equity markets and specifically the quoted power sector, the company warned. In addition, sterling appreciated by 7% against the Indian rupee in the period, resulting in foreign exchange losses for the company through the holding in the 3i India Infrastructure Fund, which is unhedged.Meanwhile, the mark-to-market value of the holding in Télédiffusion de France has declined by £6.6 million since 1 April 2011, the company revealed. NR