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Podcast: Chris Tanner, Director at John Laing Capital Management

Publication Date: 11 Oct 2018 - By ReachX Team By ReachX Team
Actionable
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Equity Fundamental IPO & Placements Equity EU ex-UK UK Utilities Energy

John Laing Capital Management (JLCM) is among one of the world’s most prominent operators and managers of funds specialising in infrastructure investment. Alongside the exposure it has in this crucial sphere, JLCM performs an investment advisory service for the independent John Laing Environmental Assets Group (LON:JLEN). 

JLEN, which has a market valuation of £400m, invests in a diversified portfolio of operational environmental infrastructure projects in the UK and France. It is poised to issue £50m new ordinary shares, with the potential to increase subject to demand issue price of 102p per share. ReachX Editor Gaurav Sharma, met Chris Tanner, Director at JLCM, to discuss JLEN’s portfolio, future plans and issuance of new ordinary shares. 

To listen to Chris Tanner’s podcast on SoundCloud click here.

Tanner says JLEN's mainstay remains its investment in wind and solar energy projects, but it is increasingly turning its focus to Anaerobic Digestion (AD) and Water and Wastewater projects. In the past 12 months alone, JLEN has bought five AD plants, with 5MW Merlin AD plant in Hibaldstow, North Lincolnshire, UK being the latest.  

"The move remains in sync with JLEN’s policy of investing in environmental infrastructure projects that have the benefit of long-term, predictable, wholly or partially inflation linked cash flows supported by long term contracts or stable regulatory frameworks, and bring additional diversity to our portfolio,” Tanner adds.

Overall, JLEN is targeting a net Internal Rate of Return (IRR) of 7.5% to 8.5% on the IPO issue price of its shares over the long-term. It also aims to pay a quarterly “sustainable dividend” that increases in line with inflation alongside the capital value of its portfolio by reinvesting cash flows not reserved for dividends.

Disclosure:

I have no positions in any of the securities referenced in the contribution

I do not use any non-public, material information in this contribution

To the best of my knowledge, the views expressed in this contribution comply with UK law

I agree with the terms and conditions of ReachX

This contribution is for informational purpose and does not constitute investment advice nor is it an offer to sell or buy, nor is it a recommendation for any security.

ReachX Team

 

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