BBGI plans small fund raise – BBGI SICAV results for 2017 have been published. Highlights are:
- NAV up 14.2% to GBP622.5 million as at 31 December 2017 (GBP545.0 million – 31 December 2016). NAV per share up 3.0% to 129.9 pence as at 31 December 2017 (126.1 pence – 31 December 2016).
- During the year, the Board increased the 2017 dividend target by 4.0% to 6.50 pence per share.
- Target dividend for 2018 raised to 6.75 pence per share, which represents a further increase of 3.8%.
- Strong cash dividend cover of 1.5x.
- An ongoing charges ratio of 0.99% that they believe continues to be the lowest in the UK listed infrastructure sector.
- 43 high quality, availability-based PPP infrastructure assets with portfolio performance and cash receipts ahead of business plan contributing to the increase in the 2017 dividend.
- Value enhancements achieved through accretive management resulting in 2.9% increase in NAV.
- Further de-risking of significant assets including the opening of Mersey Gateway Bridge in Liverpool, UK and Ohio River Bridges in the US, which moved from construction to ramp-up phase.
- Refinanced and de-risked Women’s College Hospital in Canada and Royal Women’s Hospital in Australia with long-term financing.
- Equity capital of GBP58.5 million raised through a placing of new ordinary shares in April 2017.
- New 4 year revolving credit facility of GBP180 million secured commencing in January 2018, with access to a further accordion tranche of GBP70 million.
- Strategic agreement signed with a subsidiary of SNC-Lavalin Group Inc. to invest in five operational availability-based PPP assets in Canada for approximately C$189 million. Completed investment in the initial four operational PPP Projects in Q3 and the investment in the fifth project is expected to complete in H1 2018.
- Attractive pipeline of primary and secondary PPP investment opportunities including a pipeline agreement with SNC-Lavalin, which provides a right of first offer for a robust pipeline of Canadian availability-based PPP projects currently under construction.
- At 31 December 2017, the group had a net debt position of GBP49.1 million consisting of a total cash balance of GBP21.0 million and total borrowings outstanding of GBP70.1 million. In addition, the Group had utilised a further GBP5.6 million of the credit facility to cover outstanding letters of credit.
The chairman says that “In light of its attractive pipeline of investment opportunities, the company is giving consideration to an equity fundraising in the short to medium term in order to reduce leverage and thereby to provide financing flexibility with respect to its investment pipeline. The timing of the fundraise will depend on inter alia, wider market conditions, existing shareholder support and the proximity of current pipeline opportunities. Any fundraise in the short to medium term is likely to be limited to approximately 10% of the issued share capital of the company.”
BBGI plans small fund raise