HICL Infrastructure Regulatory News (HICL)

27 January 2014

HICL Infrastructure Company Limited

Acquisition of two new investments for £23.5m

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce the acquisition of a 26% interest in Holdfast Training Services Limited ("Holdfast"), a PPP joint venture with Babcock International Group PLC that supports the Royal School of Military Engineering, from a subsidiary of Carillion plc ("Carillion"), and the acquisition of a 40% interest in the Sheffield BSF Schools project ("Sheffield BSF") from Vinci Investments Limited.

Holdfast is a 30-year concession to design, build, refurbish and maintain 32 new buildings, 21 refurbishments and five training areas across three UK locations on behalf of the UK Ministry of Defence. The project was signed in August 2008 and is nearing the end of a seven year phased construction programme, undertaken by Carillion Construction, which is expected to complete in early 2015. The project includes the provision of hard and soft facilities management ("FM") as well as specialist training and training support services all provided by Holdfast Training Services.

Sheffield BSF is a 27-year PFI concession to design, build, finance, maintain and operate two new secondary schools and one new special educational needs secondary school in Sheffield for Sheffield City Council. The project was signed in July 2007 and has been fully operational since September 2009, with construction having been undertaken by a subsidiary of Vinci Construction UK which also provides the hard and soft FM services, including catering.

The consideration paid by the Group for the investments, which amounted to approximately £23.5m in aggregate, is in line with the current valuation of similar UK social infrastructure projects in the Group's portfolio.

The acquisitions, which were funded by way of drawings under the Group's revolving credit facility, leave the Group with a current funding requirement of around £23m and take the number of infrastructure investments in the Group's portfolio to 93.

James O'Halloran, Investment Director, Infrastructure of InfraRed Capital Partners Limited (HICL's Investment Adviser) said:

"We are pleased to have been able to secure further acquisitions from vendors with whom we have longstanding relationships. These investments characterise the Group's core strategy of investing in social infrastructure projects with public sector clients and with availability-linked revenues. Sheffield BSF is fully operational and Holdfast is partially operational with potential for some capital growth once the final stages of construction are completed in a year's time.

"We are looking forward to working with all the stakeholders to ensure that Holdfast's final construction phases are delivered on time and budget and that both projects continue to operate successfully."

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Enquiries

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

Tony Roper

Keith Pickard

Robin Hubbard

Tulchan Communications +44 (0) 20 7353 4200

Martha Walsh

Peter Hewer

Canaccord Genuity +44 (0) 20 7523 8000

Dominic Waters

Neil Brierley

Will Barnett

David Yovichic

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. It was the first infrastructure investment company to be listed on the London Stock Exchange. It currently owns a portfolio of 93 social and transportation infrastructure investments and is seeking further suitable investment opportunities which fit its stated Investment Strategy.

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 (InfraRed), whose infrastructure investment team has successfully invested in over 160 infrastructure projects since 1997. InfraRed manages specialised funds and co-investment capital on behalf of a broad range of investors from around the world, creating value through investing in infrastructure and real estate projects. The head office is in London, with offices in Hong Kong, New York, Paris and Sydney. InfraRed is authorised and regulated in the UK by the Financial Conduct Authority.

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