3i Infrastructure Regulatory News (3IN)

3i Infrastructure plc announces investment in two storage terminals with Oiltanking

20 February 2015

3i Infrastructure plc ("3i Infrastructure") has signed an agreement with Oiltanking GmbH to acquire a 45% interest in Oiltanking Terneuzen B.V. in the Netherlands and Oiltanking Ghent N.V. in Belgium (together the "Oiltanking companies"). The consideration, including costs, will be €111 million from 3i Infrastructure.

The Oiltanking companies provide storage and related services for refined oil products, chemicals and biofuels. Both companies provide essential services and benefit from locations, facilities and operational capabilities that give them strong appeal to their customer base, which includes stockholding agencies, oil companies and traders.

Both terminals are located in the ARA (Amsterdam, Rotterdam, Antwerp) region in Europe, one of four global hubs for the oil industry. The region benefits from its proximity to North Sea oil production and European refinery capacity, its high quality ports infrastructure and its strong connectivity, via pipeline, road, rail and inland waterway, to European consumers of refined products. Current oil market conditions have increased demand for storage capacity and, while these terminals are almost fully let, they are well placed to benefit as contracts are renewed.

Today's investment follows 3i Infrastructure's acquisition of a 45% stake in three Oiltanking storage terminals (Amsterdam, Malta and Singapore) in 2007. 3i Infrastructure's stake (held through its Oystercatcher subsidiary) was valued at £108.7 million at 30 September 2014. Oiltanking is one of the world's leading independent storage operators, in an industry where reputation, for safety, quality and customer service, is paramount.

Completion of the transaction remains conditional upon receiving certain regulatory approvals, including clearance from the European Commission under the EU Merger Regulation.

Peter Sedgwick, Chairman, 3i Infrastructure plc, commented:

"We are pleased to announce today's investment in a Core infrastructure opportunity, which fits our criteria of investing in businesses with clear infrastructure characteristics that deliver attractive risk-adjusted returns to shareholders. In particular, the Oiltanking companies benefit from long-term demand fundamentals due to their location and the continuing need for storage of refined oil and chemical products."

Ben Loomes and Phil White, Managing Partners and Co-heads, Infrastructure, 3i Investments plc, added:

"We are delighted to be investing further alongside Oiltanking, a known and trusted partner to us since 2007 and a world leader in independent storage terminals.

Our existing knowledge of the Oystercatcher business and the market, combined with an excellent relationship with Oiltanking, makes us a natural partner to invest in these two additional storage terminals. We look forward to working with Oiltanking to further develop these businesses."

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Notes to editors:

About 3i Infrastructure plc

3i Infrastructure plc is a Jersey-incorporated, closed-ended investment company, listed on the London Stock Exchange and regulated by the Jersey Financial Services Commission. The Company is a long-term investor in infrastructure businesses and assets. The Company's market focus is on core economic infrastructure in developed economies, principally in Europe, in the utilities and transportation sectors, investing in operational businesses which generate long-term yield and can provide capital growth. It also has investments in social infrastructure and is building its exposure to primary PPP and low risk energy projects.

3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised and regulated in the UK by the Financial Conduct Authority and acts as Investment Adviser to 3i Infrastructure plc.

About Oiltanking

Oiltanking GmbH is a subsidiary of Marquard & Bahls AG, Germany, a leading petroleum company, privately owned. Oiltanking is the second largest independent tank storage provider for petroleum products, chemicals and gases worldwide. The company owns and operates 72 terminals in 22 countries within Europe, North and South America, Middle East, Africa, India as well as Asia. Oiltanking has an overall storage capacity of 19 million cubic meters.