Investment trust acquires Barclays assets in £143.4m deal

Infrastructure investment trust HICL Infrastructure Company has acquired 26 private finance initiative (PFI) and private public partnership (PPP) projects from Barclays for £143.4m.

The projects were acquired by HICL from two funds managed by Barclays Infrastructure Funds Management.

Funding for the acquisition of projects – mainly based in the UK – was made available from its revolving debt facility.

The portfolio included 10 school projects, eight health projects, five fire and police projects, two roads and a library project, with stakes in each ranging between 25% and 100%.

Graham Picken, chairman of HICL, says: “Given the size of this acquisition and the use of the group’s revolving debt facility, the board of the company will now consider the quantum and timing of the company’s next capital raising by way of C Shares. I expect to make a further announcement on this in January 2012.”

Acording to HICL, the “weighted average concession length of the portfolio” is more than 23 years, while each has its own long-term debt finance.

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