StockMarketWire.com - 3i Infrastructure remains on track to deliver a full year dividend for FY2016 of 7.25p per share and to grow this progressively.

The company has issued a trading statement for the period from 1 April to 30 June. Highlights are:

- Following the receipt of clearances from the European Commission under the EU Merger Regulation, on 5 June 2015 the Company completed the acquisition of 45% stakes in each of Oiltanking Terneuzen B.V. and Oiltanking Ghent N.V. from Oiltanking GmbH, for an aggregate consideration of €107 million (£77 million).

- The West of Duddon Sands Offshore Transmission Owner project reached commercial close on 12 June 2015. Financial close is expected later this summer, with the total investment for the project expected to be approximately £25 million.

- Following EU Merger Regulation clearance, on 16 April 2015 the Company completed the sale of its holding in Eversholt Rail Group ("Eversholt Rail").

- The portfolio continues to perform in line with expectations, generating portfolio income of £14.0 million in the period. This compares to £19.5 million in the first quarter to 30 June 2014, which included income of £3.9 million from Eversholt Rail. In addition to the reduced interest receipts following the sale of Eversholt Rail, portfolio income was down period-on-period due to a lower dividend received from Anglian Water Group ("AWG").

- The Company's liquidity position remains strong, with a pro forma cash balance of £160 million as at 30 June 2015 (after deducting £32 million for the payment of the final dividend for FY2015, which is due to be paid on 10 July 2015, and after deducting the £150 million special dividend announced on 12 May 2015, which is due to be paid on 31 July 2015), and £284 million of undrawn Revolving Credit Facility.

- The Investment Adviser continues to develop its pipeline of new investment opportunities, targeting investments in mid-market operational economic infrastructure and primary PPP and low-risk energy projects. As noted in the Company's results announcement in May 2015, the Investment Adviser is evaluating new investment opportunities in adjacent infrastructure market sectors consistent with the Company's return objectives.

Chairman Peter Sedgwick said: "The European portfolio continues to perform well. As expected, the completion of the sale of Eversholt Rail in April and a reduced dividend from AWG resulted in lower portfolio income in the period compared to the corresponding period last year. Supported by our outlook for the European portfolio and significant realised capital profits, we remain on track to deliver a full year dividend for FY2016 of 7.25 pence per share and to grow this progressively beyond FY2016."




At 8:10am: (LON:3IN) 3i Infrastructure Ltd share price was -0.1p at 167.9p



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