IIP.L Regulatory News (IIP)

25 June 2013

Infrastructure India plc

("IIP" or the "Company" or, together with its subsidiaries, the "Group")

Trading Update

Infrastructure India plc, the infrastructure fund focused on India's Transport and Energy sectors, announces the following update ahead of the release of the Group's final results for the year ended 31 March 2013. The Company anticipates that its final results will be announced in the second half of July 2013.

Financial Update

The board of IIP (the "Board") expects to announce a Net Asset Value per Share of approximately £0.77 as at 31 March 2013 (30 September 2012: £0.69; 31 March 2012: £0.95).

Value accretion resulting from the acquisition by Vikram Logistic and Maritime Services Limited ("VLMS") of the businesses, assets and liabilities of Freightstar Private Limited ("Freightstar"), appreciation of the Indian Rupee against the Pound Sterling and a decrease in the Indian risk free rate have contributed positively to the Company's Net Asset Value.

This increase has been achieved despite the impact of a slowing Indian economy, delays at Shree Maheshwar Hydel Power Corporation Limited ("SMHPCL") and VLMS, and increases in risk premia ascribed to these companies.

However, following the end of the reporting period the Indian Rupee has weakened against the Pound Sterling by approximately 11%, from 82.6 to approximately 92.0 per Pound Sterling as of the date of this announcement, which would reduce NAV by approximately £0.08 per share.

Financial Reporting

The Company has taken advantage of an early adoption of the amendments to the accounting standard IFRS 10: Consolidated Financial Statements, along with the consolidation suite of standards, namely IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 (Revised) and IAS 28 (Revised). The amendments to IFRS 10 requires qualifying investment entities to account for its investments in controlled entities at fair value through profit or loss (FVTPL) in terms of IAS 39, instead of consolidating such entities. This means that as at 31 March 2013, the Company will disclose all of its controlled entities as FVTPL. The Directors do not believe that the early adoption of this accounting standard will have a material impact on the results of the Group.

Operational Update

VLMS

As announced on 18 March 2013, VLMS completed the acquisition of Freightstar on 15 March 2013. Following the execution of the closing documentation, VLMS has conformed with several follow-up documentation requirements from the consortium of lenders to Freightstar. These documentation requirements also included internal processing at various consortium banks and were completed in early June 2013. As a result, on 18 June 2013, the Freightstar lender consortium commenced the disbursement of previously approved debt for the completion of project activities on the terminal facilities being built at Nagpur and Palwal. The remainder of the approved debt is expected to be fully disbursed in June 2013.

Following completion of the acquisition in March, the construction activities have recommenced on these facilities and VLMS management expects construction activities to be accelerated with the disbursement of the remaining senior debt. Similarly, the VLMS lender consortium is working through their documentation requirements and VLMS management expect documentation to be completed by early July 2013, allowing the disbursement of previously approved debt.

While construction activities on the Chennai and Bangalore terminal facilities have progressed, supported by the Company's investment into VLMS, the completion of these activities requires the release of debt funds. VLMS management believe that despite some delays in the release of debt funds by the two consortia, project activities can be substantially completed in the second half of the current fiscal year, in line with the Company's previous expectations.

SMHPCL

The financing constraints being faced by SMHPCL have continued to persist since the last update provided by the Company on 18 March 2013. However, in view of the national importance of the project, under the guidance of the Ministry of Finance, Government of India, the lenders to SMHPCL along with other stakeholders, including SMHPCL management and the Madhya Pradesh Power Management Company Limited, are currently in discussions as to the various options available to support completion of the project, including equity infusions from new investors and a restructuring of the project's debt facilities to, among other things, lower the interest rates. Based upon the project's financing discussions to date, the dilutive effect of these financings is expected to be in line with those already accounted for in the Group's NAV computations. The management of SMHPCL is currently targeting a commencement of the project's initial operations in the fourth quarter of the current fiscal year. A further update on progress will be provided along with the Group's full year results.

Lapse of Warrants

The Company also announces that the 40 million warrants issued by the Company on 23 June 2008 to subscribe for fully paid ordinary shares of nil par value in the Company at a subscription price of 100 pence per ordinary share (the "Warrants") will lapse at midnight on 30 June 2013.

The Warrants admission to trading on AIM will be cancelled with effect from 8:00am on 1 July 2013 and the right to exercise Warrants shall expire at the close of business on 28 June 2013, being the last trading day prior to the expiry of the Warrants.

Outlook

Despite the recent reduction in the growth rate of the Indian economy and persistent difficulties in the country's financing environment, IIP's portfolio of core economic infrastructure remain well positioned to generate attractive and sustainable cash flows to shareholders.

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