Completion of Acquisition

RNS Number : 1267Y

HSBC Infrastructure Company Limited

16 December 2010

 



16 December 2010

HSBC Infrastructure Company Limited

HICL completes acquisition of interest in M80 DBFO project

Further to its announcement of 7 October, HSBC Infrastructure Company Limited ("HICL", and together with its subsidiaries the "Group"), the listed infrastructure investment company, announces today that the Group has completed the acquisition of a 41.6% indirect interest in the M80 motorway DBFO project (the "Project") from a subsidiary of Bilfinger Berger SE ("Bilfinger Berger"). Bilfinger Berger will continue to retain a shareholding in the project.

The M80 DBFO Project, between Stepps and Haggs in Scotland, involves the upgrade of a ten kilometre stretch of the existing M80, as well as a new eight kilometre section of motorway, seven new junctions and 60 additional structures. The project is currently c. 2 years into a three year construction period, with works being performed under a Bilfinger Berger UK, Northstone (NI) Ltd ("Northstone") and John Graham (Dromore) Ltd ("John Graham") joint venture.

The project is on schedule to complete construction in December 2011 and will operate under a 30 year concession contract thereafter. Once operational the project will be paid an Availability revenue stream.  The motorway is to be operated and maintained by BEAR Scotland Ltd under a long-term services agreement. The Company will be taking a minority stake alongside Bilfinger Berger, Northstone and John Graham.

-ends-

M:Communications	020 7920 2330
Ed Orlebar
Andrew Benbow
HSBC Specialist Fund Management Limited	020 7991 8888
Tony Roper
Keith Pickard
Sandra Lowe

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. The Company now owns a portfolio of 38 infrastructure projects of which 35 are operational. Based on the 30 September 2010 Directors' valuation plus subsequent acquisitions at cost, around 10% of the portfolio by value is projects under construction.

The Company is seeking further suitable investment opportunities in line with its strategy set out most recently in the Company's interim results announced on 16 November 2010.

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, the infrastructure investment team of which 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 on 4 June 2010 that heads of terms had been agreed with HSBC for the business to become an affiliate of HSBC (from its current status of a 100% owned subsidiary) and it is currently envisaged that the transaction will be completed at the end of the first quarter of 2011. HSBC Specialist Fund Management Limited is authorised and regulated by the Financial Services Authority.

 

END

 

 

ACQEQLFFBLFEFBL