Acquisition
15 March 2011
HSBC Infrastructure Company Limited
Acquisition of an additional stake in Dutch High Speed Rail PPP project
HSBC Infrastructure Company Limited (the "Company"), the listed infrastructure investment company, announces today that it has completed the acquisition of an incremental 5.49% equity and loan note interest in the Dutch High Speed Rail PPP project, taking its total equity and loan note interests in the project to 42.99%. The total consideration paid by the Company for these newly acquired interests was €11.6 million.
The price paid compares favourably with the valuation of the project in the Company's portfolio as at 30 September 2010. This acquisition brings the number of incremental acquisitions undertaken by the Company since launch to nineteen.
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M:Communications |
+44 (0)20 7920 2330 |
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Ed Orlebar Andrew Benbow |
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HSBC Specialist Fund Management Limited |
+44 (0) 20 7991 8888 |
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Tony Roper Keith Pickard Sandra Lowe |
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Further information on the Dutch High Speed Rail PPP project
The project has been operational since 2006 and involves the ongoing operation and maintenance of two sections of train track, power and signalling between Amsterdam and the Belgian border. The revenues on the project are paid by the State of the Netherlands dependent on the availability of the track, power and signalling, independent of the level of train or passenger useage. Maintenance obligations are carried out by a joint venture comprising subsidiaries of Siemens, BAM and Fluor. Following the incremental acquisition announced above, the project comprises 12.5% of the Company's portfolio by value based upon the portfolio valuation as at 30 September 2010 adjusted for acquisitions at cost. The concession contract expires in 2031.
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. It was the first infrastructure investment company to be listed on the London Stock Exchange. It currently owns a portfolio of 38 infrastructure investments, 37 of which are PFI/PPP projects, and is seeking further suitable investment opportunities which fit its stated Investment Strategy.
In November 2010, the Company undertook a successful C share issue which raised £110m. The C Share Prospectus is available from the Company's website.
Further details of the Company can be found on its website 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. It was announced in December 2010 that a contract had been signed with HSBC for the business to become an affiliate of HSBC (from its current status of 100%-owned subsidiary) and it is currently envisaged that the transaction will be completed towards the end of the first quarter of 2011.
HSBC Specialist Fund Management Limited is authorised and regulated by the Financial Services Authority.
This information is provided by RNS