EUROPE - 3i Infrastructure stays solid

The group announced that it had invested a total of £157m in the period 1 April 2008 to 26 March 2009, the majority of which is accounted for by the £114.7m purchase of a portfolio of junior debt instruments.

Based on figures contained within yesterday's 3i Group release, this investment activity remains broadly in line with that seen last year. The firm funded drawdowns for the infrastructure division totalling £47m for the 11 month period to 28 February 2009 (with £25m of this being called in the first two months of 2009 alone), representing only a modest drop from £54m in the corresponding period of 2007/8.

In terms of realisations, an impressive £177.6m was generated over the period to 26 March - representing an uplift of £25.9m over the asset valuations at the start of the financial year. The largest proportion of this was generated by the sale of the group's 31.17% interest in Infrastructure Investors LP for a total consideration of £163.7m, which represented an uplift of £44.8m over cost and an increase of £16.2m on the valuation at 30 September 2008.

These realisation proceeds have contributed to an increase in 3i Infrastructure's cash balance from the £253.7m reported in March 2008 to £392.6m. The portfolio was also said to be performing steadily with strong income generation, though there was a warning of a decline in net asset value in the final year accounts as a result of volatility in the mark-to-market valuation of the junior debt portfolio and equity instruments.

Overall the results are encouraging, especially given the much publicised problems at 3i Group in recent months - which notably caused the investor to divest 10% of its stake in 3i Infrastructure in January. With cash to invest in a sector that continues to throw up profitable investment opportunies and exit routes, 3i's infrastructure business seems set to remain the jewel in its somewhat tarnished crown for some time to come.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• GPs
• Infrastructure
• UK / Ireland
• DACH
• Nordics
• France
• Southern Europe
• CEE
• Benelux