HICL – Investment into Race Bank Windfarm Project

11 October 2019 Investments
HICL Infrastructure PLC (“HICL” and, together with its subsidiaries, the “Group”), the listed infrastructure investment company managed by InfraRed Capital Partners Limited, is pleased to announce the completion of the acquisition of the transmission assets associated with the Race Bank Windfarm (the “Race Bank OFTO”), located off the coast of Norfolk, by Diamond Transmission Partners (“DTP”), a consortium comprising HICL and Diamond Transmission Corporation Limited (a subsidiary of Mitsubishi Corporation).

The transaction is part of Tender Round 5 of Ofgem’s Offshore Transmission Owner (“OFTO”) programme.  HICL previously announced its status as preferred bidder for the OFTO, alongside Diamond Transmission Corporation Limited, in June 2018. The Group’s investment was £24m, funded from drawings under HICL’s Revolving Credit Facility.

This acquisition fits well with the Company’s strategy of investing in essential and public core infrastructure, with a strong social purpose. The Race Bank OFTO facilitates the transmission of renewable energy to over 500,000 UK homes, contributing to the UK’s transition to a low-carbon economy.

Under the OFTO regime, DTP takes ownership of the operational transmission asset and receives contractual, availability-based revenues over a 20-year period.  DTP does not have exposure to construction risk, electricity production or power price risk.  Renewable Energy Systems (RES) will provide certain operations and maintenance services for DTP under a long-term subcontract.

More information

HICL Infrastructure PLC

HICL Infrastructure PLC (“HICL”) is a long-term investor in infrastructure assets which are predominantly operational and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange.

With a current portfolio of 119 infrastructure investments, HICL is seeking further suitable opportunities, which are positioned at the lower end of the risk spectrum, in three target markets segments: PPP projects; regulated assets; and demand-based assets.

Further details can be found on the HICL website

Investment Manager (InfraRed Capital Partners)

The Investment Manager to HICL is InfraRed Capital Partners Limited (“InfraRed”), which has successfully invested in over 200 infrastructure projects since 1997. InfraRed is a leading international investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Mexico City, Seoul and Sydney. With over 160 professionals it manages in excess of US$12bn of equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed is authorised and regulated by the Financial Conduct Authority.

The infrastructure investment team at InfraRed consists of over 80 investment professionals, all with an infrastructure investment background and a broad range of relevant skills, including private equity, structured finance, construction, renewable energy and facilities management.

InfraRed implements best-in-class practices to underpin asset management and investment decisions, promotes ethical behaviour and has established community engagement initiatives to support good causes in the wider community. InfraRed is a signatory of the Principles of Responsible Investment.

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