HICL Infrastructure Regulatory News (HICL)

22 January 2016

HICL Infrastructure Company Limited

Acquisition of an incremental investment for £4.1m

HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce the acquisition of an incremental investment in the Sheffield Schools PFI Project (the "Project") in conjunction with its existing joint venture partner, Kajima Partnerships Limited ("KPL"), from the Kier Group Pension Scheme ("KGPS") for a consideration of £4.1m.

The HICL Group and KPL have an existing joint venture holding company ("HoldCo"), in which the HICL Group has a 75% shareholding. Previously Holdco owned a 50% interest in the Project. Following the transaction, HoldCo now owns 100% of the Project, thereby increasing the HICL Group's indirect ownership from 37.5% to 75%.

The Project is a 26-year PFI concession which involves the design, construction, financing, maintenance and operation of two new primary and two new secondary schools on behalf of Sheffield City Council. The Project was signed in April 2005 and has been fully operational since January 2007. The provision of soft and hard facilities management services during the operational phase of the Project continues to be undertaken by Kier Facilities Services Limited under a concession life contract.

The consideration paid by the HICL Group for the incremental investment is in line with the current valuation of similar UK social infrastructure projects in the HICL Group's portfolio and was funded from existing cash resources. Following the acquisition, the HICL Group has a net funding requirement of approximately £7m.

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Enquiries

InfraRed Capital Partners Limited +44 (0) 20 7484 1800

Tony Roper

Keith Pickard

Laurence Richardson

Harry Seekings

Tulchan Communications +44 (0) 20 7353 4200

Chris Hughes

Latika Shah

Canaccord Genuity Limited +44 (0) 20 7523 8000

Dominic Waters

Neil Brierley

Will Barnett

David Yovichic

HICL Infrastructure Company Limited

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "HICL Group") is a long term investor in infrastructure projects which are predominantly in their operating phase and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange. With a current portfolio of 102 social and transportation infrastructure investments with predominantly availability-based income streams, it is seeking further suitable investment opportunities which fit its stated Investment Strategy.

Further details can be found on the HICL website, www.hicl.com.

Investment Adviser

The Investment Adviser to HICL is InfraRed Capital Partners Limited ("InfraRed") which has successfully invested in over 160 infrastructure projects since 1997. InfraRed is a leading international investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, Hong Kong, New York, Paris, Seoul and Sydney. With over 100 professionals it manages in excess of USD 8bn of equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed is authorised and regulated by the Financial Conduct Authority.

The infrastructure investment team at InfraRed consists of over 50 investment professionals, all with an infrastructure investment background and a broad range of relevant skills, including private equity, structured finance, construction, renewable energy and facilities management.

Further details can be found on InfraRed's website, www.ircp.com.