Centrus advises on a £650m Sustainability Linked RCF for HICL Infrastructure PLC

Transaction Overview

HICL is a FTSE 250 London-listed UK investment company that seeks to offer investors stable, sustainable long-term returns from investments in core infrastructure. 

HICL has successfully renegotiated its revolving credit facility (“RCF”), used to support the acquisition of new investments. 

The new RCF is a £650m multi-currency facility that runs to 30 June 2026, with options to extend for up to two additional years. The RCF remains on the same margin of 165bps over SONIA. 

Centrus’ Role

Centrus acted as financial advisor to HICL, a role which included: 

• Converting an accordion commitment to a term commitment, agreeing on allocations with all funders commercial negotiation of revised documentation. 
• Coordination of the process towards a successful close in an efficient and timely manner. 

Outcome

The facility’s consortium of lenders includes Barclays, CIBC, ING, Lloyds, National Australia Bank, Royal Bank of Canada, Royal Bank of Scotland International and Sumitomo Mitsui Banking Corporation.

The RCF is a sustainability linked loan, incorporating defined sustainability targets where HICL incurs a premium or reduction to the interest charged on the RCF based on performance against Environmental, Social and Governance KPIs. 

Performance against these targets will be measured annually, with the cost of the RCF adjusted for the following year. Overall, the margin on the RCF can vary between 162bps and 168bps over SONIA.

“We are very pleased to have worked with Centrus to renegotiate our sustainability linked RCF. Their expert market knowledge and collaborative approach really helped us to achieve our funding objectives in what has been a very volatile economic environment” 

Helen Price, Chief Financial Officer – HICL PLC

“HICL has not only achieved a successful refinance, but has obtained a longer term commitment from its funders. This is a testament to the strength of the business, and the strong relationship it has with lending partners”

Mark Taheny, Senior Director – Centrus

For more information, please contact Mark Taheny, Senior Director at Centrus.

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