HSBC Infrastructure cash call

16th Nov 2010 17:58

HSBC Infrastructure hopes to raise up to £110m from a C share issue. The cash will be used to pay off debt and to invest in more projects. HSBC Infrastructure has £108.4m of debt and future subscription obligations.The C shares are being issued at 100p each. The fundraising will be a combination of a placing, a one-for-eight open offer to existing shareholders and offer for subscription. The closing date of the offer for subscription and open offer is 8 December.HSBC Infrastructure has investments in 38 projects, including accommodation, hospitals, schools, rail projects and road projects in Canada. Most of the projects are in the UK. The company's net asset value was 111.3p per ordinary share at the end of September 2010. HSBC Infrastructure raised £46.6m from a placing earlier this year. The existing shares go ex-dividend tomorrow. The dividend is 3.275p a share. The company wants to pay a total of 6.7p a share for the year to March 2011.