John Laing Infrastructure Fund Regulatory News (JLIF)

JOHN LAING INFRASTRUCTURE FUND

INTERIM MANAGEMENT STATEMENT

John Laing Infrastructure Fund (JLIF), the international PPP infrastructure investment company, today announces its Interim Management Statement (IMS) for the period 1 January 2012 to 8 May 2012[1].

Highlights

·; The Portfolio showed underlying growth of 2.1% to £413.3m in the first quarter of 2012, equivalent to 8.8% on an annualised basis

·; Actual Portfolio Value increased by £32.9 million in the first quarter of 2012 

·; The Net Asset Value (NAV) was £435.2 million[2] at 31 March 2012, excluding the dividend of £12.7 

million allocated to be paid on 11 May 2012

·; NAV per share moved from 104.6 pence to 103.1 pence ex-div (106.1 pence cum-div), as at 31 March 2012, due to the dividend of 3.0 pence per share and underlying growth over the period[3]

·; Successful share issue of £31.0 million in April to replace debt and afford JLIF the flexibility in acquisition opportunities

·; Completed acquisition of stakes in three social housing PFI projects from United House for £30.5 million

·; Completed acquisition of remaining stake in North East Fire and Rescue (NEFRA) PPP project from Shepherd Construction for £1.2 million taking JLIF's total holding in NEFRA to 100%

·; Completed acquisition of 100% stake in Roseberry Park Hospital for £13.0 million from John Laing plc

·; The dividend of 3.0 pence per share will be paid to shareholders on 11 May 2012. The Scrip Dividend Alternative has been taken up by 19.4% of shareholders and therefore 2,305,120 shares will be issued on that date.

Paul Lester, Chairman of the John Laing Infrastructure Fund, said:

"The start of 2012 has seen JLIF perform strongly, with the underlying value of its Portfolio increasing by 2.1% in the first quarter of 2012. The fast moving secondary market continues to present many opportunities to JLIF and following the recent placing of additional shares, we are in a strong position to be able to take advantage of these opportunities as they arise. With many primary equity investors seeking to recycle capital from their investments, due to the lack of availability and high cost of capital, the outlook for the secondary infrastructure PPP sector and for JLIF remains positive."

David Marshall and Andrew Charlesworth, Directors of John Laing Capital Management Limited (JLCM), Investment Adviser to JLIF, said:

"The first period of this financial year has seen the acquisition of five stakes in assets from John Laing, United House and Shepherd Construction, and the issuance of 29.4 million new ordinary shares through a share placing. Proceeds of this issue will be used partly to repay debt following the acquisitions made this year.

The acquisition of the four third party assets at the start of the year demonstrates JLIF's continued appetite for sourcing assets from external parties provided they can be acquired at the right price, comply with the fund's investment policy, align well with the existing Portfolio and provide the opportunity for delivering value and expected yields for JLIF shareholders.

We continue to seek opportunities to drive greater value from our existing portfolio and to build value through further acquisitions with a view to continuing JLIF's rapid but sustainable growth to date."

Capital Raising

JLIF has successfully executed a tap issue for 29.4 million new ordinary shares (representing 9.9% of the issued ordinary share capital of the Company as at the date of its last AGM on 19 May 2011). The proceeds of the tap issue will be used to repay debt drawn, or that otherwise would have been drawn, in connection with acquisitions in the early part of the year. The remainder of the proceeds are anticipated to be used for future secondary market purchases. JLIF sees a buoyant secondary market for projects that comply with its investment policy and has a number of opportunities that it is currently evaluating. 

Dividends

JLIF's next dividend payment of 3.0 pence per share will be made on 11 May 2012. JLIF remains confident that its dividend projections are adequately cash covered in the short term.

Hedging

JLIF's policy is not to hedge the Balance Sheet values of its Portfolio. However, if it is appropriate JLIF will hedge its Portfolio income to mitigate exchange rate volatility. JLIF has entered into a derivative contract to hedge 80% of the Canadian dollar income during 2012. JLCM will continue to monitor foreign exchange rates and recommend risk mitigation to JLIF accordingly.

Gearing

As at the date of this Interim Management Statement, JLIF has £7.4 million debt drawn under its Facility. This represents 1.7% of JLIF's Total Assets as at 31 March 2012.

As stated in JLIF's Investment Policy, JLIF has the ability to raise debt of up to 25% of the Fund's Total Assets. The existing Revolving Credit Facility available to JLIF represents 13.7% of the Fund's Total Assets at 31 March 2012. JLIF will continue to monitor its required debt capacity and could seek to increase the size of its facility in the future to nearer 25% of Total Assets.

Portfolio Performance

The Portfolio has increased in value by £32.9 million to £413.3 million during the period 31 December 2011 to 31 March 2012. Against a rebased 31 December 2011 Portfolio Value, after taking account of distributions received from projects in the period and acquisitions, the Portfolio Value has increased by £8.6 million or 2.1%, net of a decrease in value of £0.5 million due to exchange rate depreciation. The majority of the exchange rate depreciation largely occurred on the Canadian dollar/£ rate, and was partially offset by the Euro/£ rate. Given the Canadian dollar has been weakening and continues to do so, JLIF entered in to a one year derivative contract to hedge 80% of its Canadian dollar income to protect cash flows and dividends. 

The NAV per share has increased from 104.6 pence at 31 December 2011 to 106.1 pence (cum-div, 103.1 pence ex-div) at 31 March 2012 primarily as a result of the increase in the Portfolio Value. The 3.0 pence dividend was approved in March 2012 and will be paid on 11 May 2012.

Subsequently, JLIF has acquired a 100% stake in Roseberry Park Hospital from John Laing plc. This asset was the remaining asset from a Portfolio JLIF agreed to acquire in April 2011. The required consents have now been obtained such that completion could occur.

Cash flows from the portfolio continue in line with the projections made by the Investment Adviser based on the underlying project models.

Pipeline

JLIF anticipates making further acquisitions from John Laing over the next three years whilst also actively pursuing third party acquisitions from the external market that meet the fund's investment criteria. Looking further into the future, with the number of primary deals reaching financial close increasing, JLCM believes there will be a robust pipeline of acquisition opportunities for JLIF over the coming years while JLIF also continues to consider acquisitions of co-shareholder stakes in existing JLIF projects.

Outlook

The outlook for JLIF and the secondary PPP infrastructure sector remains consistent with previous reporting. The UK Government has announced a substantial pipeline of future infrastructure projects of which it expects almost two thirds to be privately financed. The infrastructure space has performed with stability against broader macroeconomic volatility.

The UK Government continues to focus on economic infrastructure, which naturally promotes an environment of recycling of equity from primary market participants as they engage in the new programmes the Government is procuring. The UK's international counterparts generally continue to favour social focussed infrastructure, for example, healthcare and education. This affords JLIF the opportunity to continue to grow its overseas Portfolio.

JLIF remains optimistic for the performance and popularity of the infrastructure market.

Note:

This IMS aims to give an update of material events and transactions that have taken place during the period from 1 January 2012 to 8 May 2012 and their impact on the financial position of the Investment group. This update reflects JLCM's and the Board's current views. They are subject to a number of risks and uncertainties and could change. Factors which could cause or contribute to such differences include, inter alia, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within the portfolio of JLIF.

This IMS contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and JLIF's actions to differ materially from those expressed or implied in the forward-looking statements.

This IMS has been prepared solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules and this IMS should not be relied on by any other party or for any other purpose.

For further information, please contact:

John Laing Capital Management Tel: + 44 (0) 20 7901 3326

David Marshall

Email: david.marshall@jlcm.co.uk

Andrew Charlesworth

Email: andrew.charlesworth@jlcm.co.uk

RLM Finsbury Tel: + 44 (0) 20 7251 3801

Faeth Birch

Philip Walters

Jonathan Ridd