HICL Infrastructure Regulatory News (HICL)

13 October 2021

HICL Infrastructure PLC

"HICL" or the "Company" and, together with its subsidiaries, the "Group", the London-listed infrastructure investment company managed by InfraRed Capital Partners Limited ("InfraRed" or the "Investment Manager").

Transaction Activity

The Board of HICL is pleased to announce the following:

1) HICL has acquired incremental stakes in the Bradford Schools Phase I and Phase II PPP projects (the "Bradford Schools" projects). The Bradford Schools projects are both 27 year contracts to finance, construct, operate, and maintain secondary schools for the City of Bradford Metropolitan District Council, as part of Bradford's Building Schools for the Future (BSF) programme. Both projects are fully operational, having completed construction in 2008 and 2011 respectively. The combined consideration of £16m takes the Company's stakes in Phase I and Phase II to 48% and 62%, respectively, and is accretive to key portfolio metrics. The transaction will be financed from the below disposal and HICL's available funding surplus. These acquisitions evidence the continued execution of HICL's stated strategy of portfolio optimisation, with off-market, incremental acquisitions in well-known and high performing assets. In aggregate, the Company has now made over £200m of incremental acquisitions in the last 3 years.

2) The Company has sold its 50% interest in the Health & Safety Executive Headquarters PPP project for £11m. The price achieved represented a small premium to the asset's March 2021 valuation, and is in line with HICL's strategy of delivering shareholder value through opportunistic disposals that improve key portfolio metrics. This reallocation of capital from Health & Safety Executive Headquarters PPP to Bradford Schools is accretive to returns and yield whilst delivering an improved risk profile and a longer asset life for the portfolio.

Harry Seekings, Head of Infrastructure at InfraRed, said:

"These transactions see a continuation of the Company's strategy to selectively dispose of assets where beneficial to portfolio metrics and composition, while making further accretive investments in existing high quality holdings, which offer sustainable long-term returns and deliver for the communities they serve."

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Enquiries

InfraRed Capital Partners Limited +44 (0) 20 7484 1800 / info@hicl.com

Harry Seekings

Helen Price

Edward Hunt

Kirsty MacCallum

Teneo +44 (0) 20 7420 3169/ HICL@teneo.com

Haya Herbert-Burns

Matthew Thomlinson

Jesse Mathews

Investec Bank plc +44(0) 20 7597 4952

David Yovichic

RBC Capital Markets +44 (0) 20 7653 4000

Matthew Coakes

Aztec Financial Services (UK) Limited +44(0) 203 818 0246

Chris Copperwaite

Sarah Felmingham

HICL Infrastructure PLC

HICL Infrastructure PLC ("HICL") is a long-term investor in infrastructure assets which are predominantly operational and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange.

With a current portfolio of over 100 infrastructure investments, HICL is seeking further suitable opportunities in core infrastructure, which are inherently positioned at the lower end of the risk spectrum.

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

Investment Manager (InfraRed Capital Partners)

The Investment Manager to HICL is InfraRed Capital Partners Limited ("InfraRed") which has successfully invested in over 200 infrastructure projects since 1997. InfraRed is a leading international investment manager focused on infrastructure and real estate. It operates worldwide from offices in London, New York, Mexico City, Seoul and Sydney. With around 200 professionals, it manages 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 100 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.

InfraRed implements best-in-class practices to underpin asset management and investment decisions, promotes ethical behaviour and has established community engagement initiatives to support good causes in the wider community. InfraRed is a signatory of the Principles of Responsible Investment.

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