HICL acquire stake in Scottis

RNS Number : 5213U

HSBC Infrastructure Company Limited

26 June 2009

 



HSBC Infrastructure Company Limited

26 June 2009

HICL acquires stake in Scottish schools PFI project

HSBC Infrastructure Company Limited ('HICL' or the 'Company'), the listed infrastructure investment company, announces today it has completed the acquisition of a 30% interest in the Renfrewshire Schools project from a subsidiary of Carillion plc ('Carillion') for a consideration price of £6.8 million.

The price paid is in line with the current valuation range of similar PFI investments in the Company's portfolio.

The acquisition of equity and loan notes is payable in cash from existing resources. It takes the number of projects in HICL's portfolio to 29.

The project comprises ten primary and secondary schools, all located in Renfrewshire. It was developed and built by Carillion and has been operational since January 2008. A subsidiary of Amey plc operates the schools under a long-term services agreement. Amey Ventures Investment Ltd, a subsidiary of Amey plc, and an infrastructure fund managed by the Bank of Scotland are both 35% co-shareholders in the project.

Tony Roper, Director, HSBC Specialist Fund Management Limited, HICL's Investment

Adviser, said: 'I am pleased to have acquired this high quality asset which has a good operational track record. This new investment is a good addition to the existing portfolio and increases the number of investments in education projects to eleven.  We look forward to working with our fellow shareholders to ensure this project continues to be well managed and successful.'

Ends

M:Communications [phone]

Ed Orlebar

Tilly von Twickel

HSBC Infrastructure Company Limited

The Company is a long term investor in infrastructure projects which are predominantly in their operating phase and yielding steady returns. With this acquisition it now owns a portfolio of 29 infrastructure projects which are all operational. None of the investments in the portfolio is a demand-based income project (whose revenue is dependent on the amount of usage).

The Company is seeking further suitable investment opportunities in line with its strategy set out most recently in the Company's results announced on 28 May 2009.

Further details of the Company can be found from its web site www.hicl.hsbc.com

Investment Adviser

The Investment Adviser to the Company is HSBC Specialist Fund Management Limited, whose infrastructure investment team has successfully invested in infrastructure projects since 1997 and which is part of HSBC Specialist Investments, the infrastructure and real estate investment arm of the HSBC Group. HSBC Specialist Fund Management Limited is authorised and regulated by the Financial Services Authority.

 

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