3i to pay dividend despite fall in income
3i Infrastructure said it would pay a final dividend as its portfolio performed in line with expectations in the quarter to June 30.
The infrastructure investor reported total income and non-income cash of £24m compared with £28m in the same period last year.
The company said it would pay a final dividend for 2020 of 4.6p a share on July 13 and was on track to deliver a 2020 dividend target of 9.80p a share, it added.
3i’s cash balance was £420 million and its £300m revolving credit facility was undrawn. The company has a further £202m in receivables due unconditionally in two equal instalments in December 2020 and December 2021, following the disposal in 2019 of Wireless Infrastructure Group.
“The portfolio overall performed in line with expectations during the period, with minor variations from our March 2020 valuation assumptions in individual assets. The investment manager is working closely with the portfolio companies' management teams as we continue to address the challenges of the Covid-19 pandemic,” the company said on Thursday.
“The portfolio continues to prove its resilience in these market conditions, and has again delivered a good level of income. We have strong liquidity and are continuing to see a good flow of potential investment opportunities across our target markets, though we will remain patient and selective."