HICL Infrastructure Regulatory News (HICL)

04 June 2010 

HSBC Infrastructure Company Limited

('HICL' or the 'Company')

Re Investment Adviser

The Company's directors note that the management of HSBC Specialist Investments Limited ("HSIL"), the infrastructure and real estate arm of the HSBC Group ("HSBC") and owner of the Company's Investment Adviser, HSBC Specialist Fund Management Limited, has agreed outline terms with HSBC for a change in ownership which will lead to the business becoming independent. The arrangement will result in the infrastructure and real estate management team owning a majority share in the business, with HSBC maintaining a substantial minority holding. The process is expected to be completed by the end of 2010.

The Board of HICL, in conjunction with its advisers, is in active discussions with the Investment Adviser to ensure that the current operational relationship with the Company is maintained. In particular the Board has sought, and received, comfort that the necessary steps are being taken to secure the requisite consents and regulatory approvals.

The Board has also sought, and received, assurances that the Investment Adviser will retain its current team and operational infrastructure as well as continuing HSBC banking support and involvement in investment opportunities and raising of new funds.

Commenting on the news, Graham Picken, Chairman of HSBC Infrastructure Company Limited, said:

"The Board remains committed to working with the Investment Adviser to ensure that the Company continues to receive a level of support and quality of service consistent with that provided in the past, maintaining HICL's position as a leading infrastructure fund with access to a strong pipeline of investment opportunities."

-ends-

Enquiries

M:Communications +44 (0)20 7920 2330

Ed Orlebar

Andrew Benbow

HSBC Specialist Fund Management Limited +44 (0) 20 7991 8888

Tony Roper

Keith Pickard

Sandra Lowe

Notes to Editors  

HSBC Infrastructure Company Limited

The Company is a long term investor in infrastructure projects which are predominantly in their operating phase and yielding steady returns. The Company now owns a portfolio of 33 infrastructure projects, of which 32 are operational. None of the investments in the portfolio is a demand-based income project (whose revenue is dependent on the amount of usage).

The Company is seeking further suitable investment opportunities in line with its strategy set out most recently in the Company's results announced on 25 May 2010.

The Company is registered in Guernsey, has a board of four independent directors and is administered by Dexion Capital (Guernsey) Ltd.

The Company intends to seek approval from shareholders for a change of the Company's name in due course.

Further details of the Company can be found from its web site www.hicl.hsbc.com

Investment Adviser

The Investment Adviser to the Company is HSBC Specialist Fund Management Limited, whose infrastructure investment team has successfully invested in infrastructure projects since 1997 and which is part of HSBC Specialist Investments Limited, the infrastructure and real estate investment arm of the HSBC Group. HSBC Specialist Fund Management Limited is authorised and regulated by the Financial Services Authority.

HSBC will continue to support the infrastructure and real estate management team and will remain a substantial minority shareholder in the new business.

HSIL was acquired by HSBC in 2000 and has maintained a legally separate and organisationally stand-alone identity operating separately within the HSBC Group. The new arrangements will ensure the management and operation of existing funds remain unchanged and continue to provide the business with the flexibility and autonomy it needs to benefit its investors and business partners in a changing regulatory environment.