20th Mar 2007 08:52
HSBC Infrastructure Company Limited20 March 2007 20 March 2007 HICL - Portfolio Update HSBC Infrastructure Company Limited ("HICL"), the listed infrastructureinvestment company, announces today three transactions for an aggregateconsideration of £33.3m, payable in cash from existing resources. Two of theacquisitions represent an increase in the stake held by HICL in existingprojects. Kemble Water The HICL group has acquired a participation of £30m in the Junior Term LoanFacility for Kemble Water, which, together with the other loan facilities,support the acquisition of Thames Water. Kemble Water acquired the whole ofThames Water from RWE including the regulated UK water business andnon-regulated businesses, including Thames Water's property, commercial, andinternational businesses. Stake increase in Barnet Hospital and Buxton Health and Safety projects The HICL group has also acquired - the equity and subordinated debt interest held by LFG Associates Limited, aprivately-owned entity, in the Barnet Hospital project, thereby increasing itsequity stake further from 41% to 51%. The Barnet Hospital project is a long termconcession to design, construct, operate and maintain the re-building of BarnetGeneral Hospital in North London. The project has been operational since April2000. HICL had already increased its equity stake in the project from 30% to 41% by purchasing some of Bouygues' interest (through subsidiary BHP) in July 2006. - the equity and subordinated debt interest held by Shepherd ConstructionLimited, a privately-owned entity, in the Buxton Health & Safety Laboratoryproject, thereby increasing its equity stake from 60.01% to 80% and its share of the subordinated debt from 80% to 90%. The Health & Safety Laboratory project is a long term concession to design, construct, operate and maintain new workshops and offices in Buxton and the disposal of old facilities at Sheffield. The project has been operational since October 2004. Tony Roper, Director of HSBC Specialist Fund Management Limited, HICL'sInvestment Adviser, said: "We are delighted to announce these threeacquisitions, which support HICL's objective to provide investors with stableand attractive distribution yield from its existing investment portfolio,supported by a strategy of expanding through carefully selected acquisitions ofinfrastructure investments. The participation in Kemble Water will enhance theyield generated by the portfolio of existing assets and provides HICL withdiversification into the regulated utilities sector." Enquiries M:Communications +44 (0)20 7153 1523 Ed Orlebar Notes HSBC Infrastructure Company Limited The Company, the infrastructure investment company listed on the London StockExchange, invests in mature infrastructure projects that have generallycompleted their construction phase. It seeks to deliver long-term sustainabledividends at levels that exceed current UK and other European government bondyields. The investment adviser to the Company is HSBC Specialist Fund ManagementLimited, whose infrastructure investment team has successfully invested ininfrastructure projects since 1997. Thames Water Thames Water is the largest water and wastewater services company in the UnitedKingdom, providing drinking water to eight million people and sewage services to13 million customers. The company's supply area covers 5,000 square miles acrossLondon and the Thames Valley, from Kent in the east to Gloucestershire in thewest, and includes 20,000 miles of water mains and 40,000 miles of sewers. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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