International PPL to raise £75m for debt repayment, investments

10th Oct 2018 08:27

(Sharecast News) - International PPL has announced plans to raise around £75m in an equity raising to pay down debt and free up funds for future investment.The company said on Wednesday that it was looking at an issue price of 152.5p, which represents a premium to the directors' estimate of the group's ex-dividend net asset value."The board is launching the fund raising in response to shareholder feedback indicating a demand to reinvest into the infrastructure sector following recent market transactions, to repay drawn facilities and to provide sufficient resources for the company's contracted future acquisitions and other planned investments," it said.Currently, £24.8m is drawn of the cash component of the company's corporate debt facility. Following its £47m investment in the Dudgeon OFTO project, due to complete this month, approximately £72m will be drawn on the cash component of the corporate debt facility. International PPL said its pipeline of opportunities is strong and it expects that a further £200m will be required to be drawn under its corporate debt facility next year to meet contractual obligations with respect to its final investments in the Cadent gas distribution business and further amounts required to fund its additional commitments to other planned investments.At 0950 BST, the shares were down 0.8% to 153.40p.