HICL Infrastructure Regulatory News (HICL)

23 May 2011

HICL Infrastructure Company Limited

Acquisition of investments in three UK PFI schools projects for £17.2million

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, announces today that the Group in conjunction with one of its existing joint venture partners, Kajima Partnerships Limited ("KPL"), has acquired an interest in three UK PFI schools projects from Kier Project Investment Limited ("Kier") and Dexia Credit Local ("Dexia"). The total consideration paid by the Group for its share of the acquired interest amounted to £17.2million.

The Group and KPL have established a new joint venture holding company ("Holdco") in which the Group has a 75% shareholding and has acquired, through this Holdco, an investment in the three projects as follows:

·; a 100% interest in the Norwich Area Schools PFI Project;

·; a 100% interest in the Oldham Secondary Schools PFI Project; and

·; a 50% interest in the Sheffield Schools PFI Project.

All of the above projects reached Financial Close in either 2005 or 2006 and have been operational for a number of years.

The consideration paid for these investments is in line with the current valuation of similar UK PFI projects in the Group's portfolio.

The acquisition will be funded from the Group's existing cash resources.

The acquisition takes the number of infrastructure investments in the Group's portfolio to 40.

Tony Roper, Director of InfraRed Capital Partners Limited, HICL's Investment Adviser, said: "The team is pleased to have acquired an investment in each of these three operating PFI projects. The acquisitions add to the Group's existing portfolio of Schools projects and build on the successful relationship which we already have with Kajima Partnerships Limited. We look forward to working with each Local Authority and the other stakeholders to ensure that these projects continue to be well-managed and successful."

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HICL Infrastructure Company Limited

The Company is a long term investor in infrastructure projects which are predominantly in their operating phase and yielding steady returns. Once these acquisitions are completed, the Company will own a portfolio of 40 infrastructure projects of which 38 will be operational.

The Company continues to seek further suitable investment opportunities in line with its strategy set out in its interim results and its November 2010 C share prospectus.

Further details of the Company can be found on its website www.hicl.com.

Investment Adviser

The Investment Adviser to the Company is InfraRed Capital Partners Limited (formerly HSBC Specialist Fund Management Limited) whose infrastructure investment team has successfully invested in and managed infrastructure projects since 1997. InfraRed Capital Partners Limited is authorised and regulated by the Financial Services Authority.

Further details of the Investment Adviser can be found on its website www.ircp.com.

Further information on the three new Projects

Norwich Area Schools PFI Project: The Project involves the financing, design and construction, operation and maintenance of six schools, five primary schools and one secondary school in and around Norwich for Norfolk County Council. The Project reached Financial Close in March 2006, became operational in August 2008 and has a concession end date of July 2032. The six schools were built by Kier Regional Limited, with soft and hard FM services now being provided by Kier Facilities Services Limited. The Project is availability based with revenue in the form of an annual 'unitary charge'.

Oldham Secondary Schools PFI Project: The Project involves the financing, design and construction, operation and maintenance of two 1,500 place secondary schools on part of each existing school site for Oldham Metropolitan Borough Council. The Project reached Financial Close in May 2006, became operational in February 2008 and has a concession end date of January 2033.The two schools were built by Kier Regional Limited, with soft and hard FM services now being provided by Kier Facilities Services Limited. The Project is availability based with revenue in the form of an annual 'unitary charge'.

Sheffield Schools Project:The Project involves the financing, design and construction, operation and maintenance of two primary schools and two secondary schools for Sheffield City Council. The Project reached Financial Close in April 2005, became operational in January 2007 and has a concession end date of July 2031.The four schools were built by Kier Regional Limited, with soft and hard FM services now being provided by Kier Facilities Services Limited. The Project is availability based with revenue in the form of an annual 'unitary charge'