Acquisition of 3 new investments for £75m

Date

HICL Infrastructure Company Limited (the Company, and together with its subsidiaries the Group), the listed infrastructure investment company, is pleased to announce the following acquisitions:

1. A 100% interest in the Edinburgh Schools PFI Project from Eiser Infrastructure Partners Limited (Eiser). This project involved the construction of six secondary schools and two primary schools on seven sites for the City of Edinburgh Council. The construction cost of the project was £165m and the schools were handed over in a phased completion between November 2008 and January 2010. Mitie PFI Limited (Mitie) undertakes the hard and soft facilities management (FM) services for the project under a long-term concession life agreement.

2. A 100% interest in the Perth & Kinross Schools PFI Project from Eiser. This project involved the construction of four secondary schools and five primary schools with community facilities on six sites in the Perth and Kinross area, in central Scotland. The construction cost of the project was £136m and the schools were handed over in a phased completion between July 2009 and October 2011. Mitie undertakes the hard and soft FM services for the project under a long-term concession life agreement. The headline price above includes a future loan note subscription obligation for £12.7m, which is due to be paid into the project in April 2013.

3. Through the joint venture holding company which the Group owns with Kajima Partnerships Ltd, a 37.5% interest in the West Lothian Schools PFI Project (Project) from Dawn Construction Limited (Dawn). The Project involved the construction of two new secondary schools, the Armadale Academy in Armadale and the Dean Community High Schools in Livingston, Scotland. The construction cost for the two schools was approximately £60m, with both opening in 2009. The Project’s co-shareholder is Hochtief PPP Solutions (U.K.) Limited, who is also responsible for managing the Project. Hard FM services are provided by Dawn.

The total consideration for these acquisitions is £75.0m (including the £12.7m future loan note subscription obligation), which is in line with the current valuation of other U.K. PFI projects in the Group’s portfolio and brings the total number of infrastructure investments within the Group’s portfolio to 78. The acquisitions were funded from the Group’s existing cash and debt resources.

Tony Roper, Head of Secondary Infrastructure at InfraRed Capital Partners Limited (the Company’s Investment Adviser), said:

“These acquisitions form part of the advance pipeline reported in the Company’s Interim Results and are in line with the Group’s stated investment strategy. All the projects are operational, and we look forward to working with our new partners in ensuring these projects deliver the required services and facilities to their clients.

"As a result of these acquisitions, the Company now has a net current funding requirement of £75m. The Company will seek to address this funding requirement partially through the issue of shares by way of tap issuance, which it has authority to do on a non pre-emptive basis for a further 36,207,221 shares, as and when the Directors deem appropriate.”