HICL Infrastructure

10 June 2020

HICL Infrastructure PLC

"HICL" or "the Company" and, together with its subsidiaries, "the Group", the London-listed infrastructure investment company managed by InfraRed Capital Partners Limited ("InfraRed" or "the Investment Manager").

New Investments

HICL is pleased to announce the following:

1)    The acquisition of a further 74% interest in Holdfast Training Services Limited ("Holdfast"), a PPP project that supports the Royal School of Military Engineering ("RSME"), from Babcock International Group PLC ("Babcock"). The 30-year public-private partnership ("PPP") was signed in August 2008 and covers the design, construction, refurbishment and maintenance of  a number of buildings and training areas across three UK locations on behalf of the UK Ministry of Defence. Construction was completed in 2015. A subsidiary of Babcock will continue to provide hard and soft facilities management, as well as specialist training and training support services. HICL acquired an initial 26% interest in Holdfast in 2014 and, with completion of this incremental investment, will hold a 100% interest.

2)    The acquisition of the transmission assets associated with the Walney Extension Offshore Windfarm (the "Walney OFTO") located in the Irish Sea, by Diamond Transmission Partners ("DTP"). DTP is a consortium comprising HICL, Diamond Transmission Corporation Limited (a subsidiary of Mitsubishi Corporation) and Chubu Electric Power Company Netherlands B.V. (a subsidiary of Chubu Electric Power Co., Inc.).  HICL previously announced DTP's status as preferred bidder for the OFTO in March 2019.  

The combined consideration was £103m and was funded from the Group's existing resources and the Revolving Credit Facility.

Harry Seekings, Co-Head of Infrastructure at InfraRed said:

"These investments align with HICL's strategy of investing in essential core infrastructure, with a strong social purpose, delivering long-term returns. The Walney OFTO is supporting the UK's transition to a low carbon future through the provision of green energy to over 600,000 UK homes, while the RSME PPP supports access to high quality education and training to approximately 7,000 service personnel annually for the Ministry of Defence. Both investments are accretive to the existing portfolio, particularly in relation to their forecast yield.

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Enquiries

InfraRed Capital Partners Limited                            +44 (0) 20 7484 1800 / [email protected]

Harry Seekings

Keith Pickard

Kirsty MacCallum

Teneo                                                                             +44 (0) 7342 031051 / [email protected]

George Hutchison

Haya Herbert-Burns

Investec Bank plc                                                         +44(0) 20 7597 4952

David Yovichic

RBC Capital Markets                                                   +44 (0) 20 7653 4000

Darrell Uden

Aztec Financial Services (UK) Limited                     +44(0) 203 818 0246

Chris Copperwaite

Sarah Felmingham

HICL Infrastructure PLC

HICL Infrastructure PLC ("HICL" or the "Company", and together with its subsidiaries the "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 over 100 infrastructure investments, HICL is seeking further suitable opportunities, which are positioned at the lower end of the risk spectrum within core infrastructure.

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

Investment Manager (InfraRed Capital Partners)

The Investment Manager 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 190 professionals it manages in excess of US$12bn 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 over 90 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.