Portfolio Update

HSBC Infrastructure Company Limited
20 March 2007







20 March 2007


                            HICL - Portfolio Update



HSBC Infrastructure Company Limited ('HICL'), the listed infrastructure
investment company, announces today three transactions for an aggregate
consideration of £33.3m, payable in cash from existing resources. Two of the
acquisitions represent an increase in the stake held by HICL in existing
projects.


Kemble Water


The HICL group has acquired a participation of £30m in the Junior Term Loan
Facility for Kemble Water, which, together with the other loan facilities,
support the acquisition of Thames Water. Kemble Water acquired the whole of
Thames Water from RWE including the regulated UK water business and
non-regulated businesses, including Thames Water's property, commercial, and
international businesses.


Stake increase in Barnet Hospital and Buxton Health and Safety projects


The HICL group has also acquired


- the equity and subordinated debt interest held by LFG Associates Limited, a
privately-owned entity, in the Barnet Hospital project, thereby increasing its
equity stake further from 41% to 51%. The Barnet Hospital project is a long term
concession to design, construct, operate and maintain the re-building of Barnet
General Hospital in North London. The project has been operational since April
2000. HICL had already increased its equity stake in the project from 30% to 
41% by purchasing some of Bouygues' interest (through subsidiary BHP) in July 
2006.


- the equity and subordinated debt interest held by Shepherd Construction
Limited, a privately-owned entity, in the Buxton Health & Safety Laboratory
project, thereby increasing its equity stake from 60.01% to 80% and its share 
of the subordinated debt from 80% to 90%. The Health & Safety Laboratory project 
is a long term concession to design, construct, operate and maintain new 
workshops and offices in Buxton and the disposal of old facilities at Sheffield. 
The project has been operational since October 2004.


Tony Roper, Director of HSBC Specialist Fund Management Limited, HICL's
Investment Adviser, said: 'We are delighted to announce these three
acquisitions, which support HICL's objective to provide investors with stable
and attractive distribution yield from its existing investment portfolio,
supported by a strategy of expanding through carefully selected acquisitions of
infrastructure investments. The participation in Kemble Water will enhance the
yield generated by the portfolio of existing assets and provides HICL with
diversification into the regulated utilities sector.'





Enquiries


M:Communications [phone]

Ed Orlebar



Notes


HSBC Infrastructure Company Limited


The Company, the infrastructure investment company listed on the London Stock
Exchange, invests in mature infrastructure projects that have generally
completed their construction phase. It seeks to deliver long-term sustainable
dividends at levels that exceed current UK and other European government bond
yields.


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


Thames Water


Thames Water is the largest water and wastewater services company in the United
Kingdom, providing drinking water to eight million people and sewage services to
13 million customers. The company's supply area covers 5,000 square miles across
London and the Thames Valley, from Kent in the east to Gloucestershire in the
west, and includes 20,000 miles of water mains and 40,000 miles of sewers.



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