Disposal of an investment

30 April 2018

HICL Infrastructure Company Limited

Disposal of an investment

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company advised by InfraRed Capital Partners Limited ("InfraRed"), announces that the Group has entered into an agreement to divest its 100% equity and subordinated debt interest in the Highland Schools PPP2 Project ("Highland Schools") for £56.2m. The disposal is expected to complete during July 2018.

The Group sought and received offers for its interest in Highland Schools in March 2018. These were analysed by InfraRed and represented significantly greater value than could be achieved by retaining the investment. The disposal is accretive in terms of the total return, inflation correlation and weighted average asset life of the portfolio once the disposal has completed.

The profit on disposal, after costs, represents a premium of £9.7m over the Directors' valuation of £46.5m as at 30 September 2017. HICL expects to redeploy the proceeds into accretive investments and the Company would consider further selective disposals as a means of managing its overall funding position.

Harry Seekings, Director, InfraRed Capital Partners Limited said:

"The disposal of HICL's investment in Highland Schools PPP2 is a tangible example of the Company's business model in action. The Board and InfraRed seek opportunities to enhance value in the existing portfolio and this includes optimising portfolio performance through accretive disposals.

"Finding additional value for HICL shareholders is a priority for both the Board and InfraRed and, in this case, we have received an offer in excess of the value that could be achieved by retaining the investment within the portfolio. The profit generated supports the Directors' approach to the valuation of HICL's portfolio and the steadfast approach taken to enhancing shareholder value."

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Enquiries

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

Harry Seekings

Keith Pickard

Tulchan Communications +44 (0) 20 7353 4200

Latika Shah

Canaccord Genuity Limited +44 (0) 20 7523 8000

David Yovichic

HICL Infrastructure Company Limited

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "HICL Group") 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 119 infrastructure investments, HICL is seeking further suitable opportunities, which are positioned at the lower end of the risk spectrum, in three target markets segments: PPP projects; regulated assets; and demand-based assets.

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

Investment Adviser (InfraRed Capital Partners)

The Investment Adviser 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, Hong Kong, New York, Seoul and Sydney. With over 130 professionals it manages in excess of US$10bn of 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 approximately 70 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.