HSBC Infra. eyeing placing to fund spending spree

23rd Sep 2010 07:41

Infrastructure investor HSBC Infrastructure Company Limited (HICL) is still ready to get its wallet out, but investors will be expected to help out with debt reduction.The group's investment adviser continues to see a strong pipeline of investment opportunities, and HICL is in exclusive negotiations on a number of good sized projects across a range of target sectors and geographies. There is a good chance that some of these opportunities will translate into actual investments and commitments in the near future. As is company policy, any new acquisitions will be paid for in cash, with the readies drawn from HICL's existing bank facility, after which the company will seek to pay down its debt after raising money through the issue of new shares.This policy enables it to maintain the flexibility to grow its portfolio of investments, as and when suitable opportunities arise, the company said.HICL has used up its ability to issue shares by way of a "tap" issue for the time being, and expects the next fundraising will be undertaken by way of a prospectus and formal marketing of a placing and offer for subscription.