Interim Management Statement

HSBC Infrastructure Company Limited
11 February 2008


11 February 2008



HSBC Infrastructure Company Ltd (the 'Company' or 'HICL')



INTERIM MANAGEMENT STATEMENT


The Company currently owns a portfolio of 27 infrastructure investments, the
majority of which are low risk, yielding projects backed by long term
concessions with public sector authorities.


The Company reports its Interim Management Statement for the period commencing 1
October 2007 to 8 February 2008, in accordance with the FSA disclosure and
Transparency Rule 4.3. References to the Group below refer to the Company and
its 100% owned subsidiaries.


Graham Picken, Chairman of HSBC Infrastructure Company Ltd said 'The Board is
pleased with the performance of the Company which is well positioned to deliver
its long term targets, and policy of progressive distribution growth. There is a
regular flow of good quality new investment opportunities under evaluation and
we remain optimistic of our growth prospects.'


Tony Roper, director of HSBC Specialist Fund Management Ltd ('HSFML'), the
Investment Adviser, said 'The defensive characteristics of the Company's
portfolio make this an attractive asset class, brought into sharp focus by
current market conditions. None of the projects have short term debt which
requires refinancing, and none are exposed to floating rates due to long term
hedges in place. Whilst the credit markets have shrunk, debt funding is still
available for infrastructure assets with sound fundamentals.'



Trading update


The Company has seen its portfolio of infrastructure and PFI investments
continue to perform well. HSFML, in its capacity as Investment Adviser to the
Company and Operator of the Company's partnership, continues to optimise the
returns from each investment. This work includes selected refinancings of
project debt where new facilities can be secured on improved terms.


All projects that are debt funded have long term facilities in place with any
interest rate exposure appropriately hedged. Any downgrade in the rating of a
monoline insurer will have a negligible impact on only one of the 27 projects in
the portfolio.

Discussions continue between a subsidiary of the Company and HMRC to recover 
withholding tax.  After taking further advice from the Group's tax advisers and 
in the light of Counsel's opinion, the Directors remain confident that there 
are reasonable prospects for recovery.  The Investment Adviser is actively 
seeking to resolve this matter.


As reported on 21 December 2007, the Company completed its acquisition of an
additional 14.14% of the Home Office project for £14.4m, to take its equity
stake to 80% and its loan note stake to 100%.


The Group's valuation of the portfolio at 30 September 2007 was £384.1m. Since
then, the Group has acquired six assets from Kajima Partnerships Ltd in October
for £30.2m and the additional Home Office stake for £14.4m.


In January 2008 the Company held a successful visit for investors to the
Metropolitan Police Specialist Training Centre. Guests saw the facility in use
and heard how the project is being run and operated.



The Group's Debt facilities


As announced on 21 December 2007, the Company successfully refinanced the
Group's debt facilities by agreeing a new 5 year facility with Bank of Scotland
plc.


This refinancing provides a £200 million multi-currency facility and replaces
the Group's previous lines of credit of £135 million. The debt is available on
improved terms. The net debt of the Group at 31 December 2007 was £112m
(excluding the outstanding loanstock commitment of £22.3m for the Colchester
Garrison project).



Valuation of the Portfolio


The Directors and the Investment Adviser regularly review the portfolio and its
valuation. The nature of the long term concessions (without break clauses) and
the continued market appetite for this asset class have underpinned asset
values. Recent transactions in the UK PFI sector suggest that discount rates are
broadly similar to those used in September 2007.



Investment opportunities


The Investment Adviser continues to identify suitable new infrastructure assets
for purchase. The Company's Investment Policy can be found on the Company's
website: www.hicl.hsbc.com


As announced in last November's interim results, the Company and its advisers
have been developing and planning the next phase of the Company's growth. This
is likely to entail seeking further equity capital to enable the Company to
repay the Group's existing debt. In turn, this in turn will allow the enlarged
bank facility to be available to finance new investments. The timing and quantum
of the capital raising have yet to be finalised and further details will follow.



Outlook


Whilst the recent turbulence in the credit markets is affecting a number of
sectors, it has not affected the Company's current portfolio or the number of
new investment opportunities presented to the Investment Adviser. Debt continues
to be available to finance assets with core infrastructure characteristics. The
Investment Adviser is using its growing network of relationships, and its HSBC
connections, to source suitable new investments in the UK and abroad.


Financial Calendar


The Company intends to announce its preliminary results for the 12 months to 31
March 2008, including an updated valuation of the portfolio, on 28 May 2008.



For further information please contact:

HSBC Specialist Fund Management Limited 020 7991 8888
Tony Roper
Keith Pickard
Sandra Lowe



M: Communications                       020 7153 1530
Ed Orlebar
Tilly von Twickel



Notes to Editors

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 manages a portfolio of mostly operational infrastructure projects
and seeks to acquire further investment opportunities.

The Investment Adviser to the Company is HSBC Specialist Fund Management
Limited, whose infrastructure investment team has successfully invested in
infrastructure projects since 1997.




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