HICL Infrastructure : Acquisition of a new investment

13 September 2016

HICL Infrastructure Company Limited

Acquisition of a new investment

HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners Limited, is pleased to announce the purchase of a proportion of the Road Management Services (A13) PLC Index-Linked Guaranteed Secured Bonds 2028 (the 'Bonds') for £50.1m. The Bonds were issued in 2000 to finance the A13 Thames Gateway PFI Project (the 'Project') and have the benefit of an unconditional and irrevocable financial guarantee from the monoline MBIA UK in respect of all payments of interest and principal.

The Bonds are repayable in 2028. As a senior secured debt investment, with direct RPI-linkage, they are expected to deliver a total return of circa.7%.

The Project is a £220m 30-year PFI concession to design, build, finance and operate a 20km section of the A13 road between Limehouse, London and Wennington, Essex on behalf of Transport for London ('TfL'). The project forms part of TfL's policy to improve transport links and access throughout East London along an axis from the M25 to the City of London. The design reflects an integrated transport strategy, focusing on greater use of public transport, cycling and walking as well as reducing accidents and congestion.

The consideration paid by the HICL Group for the investment was funded through a combination of existing cash resources and a drawing on the Group's dedicated revolving credit facility. Following the purchase of the Bonds, the Group has a net current funding requirement of approximately £76m which is due to increase to £148m once the conditional investment in the A63 is acquired in Q1 2017.

Tony Roper, Director, InfraRed Capital Partners Ltd said 'We are pleased to have secured this investment via a relationship of ours. Most senior debt investments do not offer the appropriate balance of return, duration and inflation linkage, but when they do, we will consider them for the Group.'

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Enquiries

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

Tony Roper
Keith Pickard
Harry Seekings

Tulchan Communications+44 (0) 20 7353 4200

David Allchurch
Latika Shah

Canaccord Genuity Limited+44 (0) 20 7523 8000

Dominic Waters
Neil Brierley
Will Barnett
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 projects which are predominantly in their operating phase and yielding steady returns. It was the first infrastructure investment company to be listed on the London Stock Exchange. With a current portfolio of 107 social and transportation infrastructure investments (and one conditional investment) in projects with predominantly availability-based income streams, it is seeking further suitable investment opportunities which fit its stated Investment Strategy.

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

Investment Adviser

The Investment Adviser to HICL is InfraRed Capital Partners Limited ('InfraRed') which has successfully invested in over 160 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, Paris, Seoul and Sydney. With over 120 professionals it manages in excess of USD 9bn 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 60 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.

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