John Laing trust raises £242m for new projects

The £567.1m John Laing Infrastructure Fund (JLIF) has easily reached the £240m upper limit on its recent capital raising.

The listed infrastructure investment trust last month said it was looking to raise between £100m and £240m by offering new shares.

The trust today announced it has raised £242.3m through the sale of 218,291,103 new shares and it said the proceeds would be used to pay down debt and acquire three new infrastructure projects worth £103m.

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The offer was oversubscribed, which meant that the price for the new shares was 111p, which was at the upper limits of the trust’s proposed price range.

The price meant the shares were bought at a 6.3 per cent premium to the trust’s net asset value, which is less than the premium on existing shares of 8.3 per cent, according to data from the Association of Investment Companies.

Paul Lester, Chairman of the trust, said: “Today’s proceeds of £242.3m represent the largest raising of new capital that JLIF has completed, and reflects the ongoing success of our low risk, predictable yield model, as well as the continued popularity of the listed infrastructure sector as an asset class.”

Yesterday, fellow listed infrastructure investment trust Bilfinger Berger Global Infrastructure, announced it was looking to raise £200m to finance new projects, as listed infrastructure trusts continue to trade on large premiums and raise large sums as investors are attracted to the stable income flow of the asset class.