Wednesday 27 January 2021 8:01 am

3i Infrastructure holds dividend despite yearly income slump

Investment firm 3i Infrastructure remains on track to meet its dividend target after it reported a resilient third quarter on Wednesday.

The company secured a total income of £24m between 1 October and 31 December, a 45 per cent drop from the £44m it took home during the same period last year.

It is on track to meet its dividend target of 9.8p per share, a year-on-year rise of 6.5 per cent, as cash balance hit £481m at the end of 2020.

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Phil White, head of infrastructure and investment manager of the company, said: “During the period we have been pleased by the resilient performance of our portfolio and have continued to progress a number of potential investment opportunities from our pipeline.  

“Our markets remain very competitive despite the uncertainties caused by the pandemic, but we are maintaining our investment discipline and continue to focus on investments that we believe will enhance the company’s portfolio.”

3i Infrastructure invests in infrastructure businesses and assets, with a focus on green projects in developed economies and operating schemes which generate long-term yield and capital growth.

Its success was helped by a series of follow-on investments, such as the purchase of the BP fibre cable system in the Gulf of Mexico and further stakes in Dutch PPP projects.

The company added: “Power prices have increased in the period due to positive news around Covid-19 vaccines and higher commodity prices.  

“If maintained, this would benefit our portfolio companies that generate electricity.

“The end of the UK’s transition period following Brexit and the conclusion of an agreement on the future trading relationship with the EU has, as expected, had no noticeable effect on our portfolio companies.”

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