HICL buys interest in Highlands Schools PFI project from 3i

published 25 March 2013

HICL Infrastructure Company has agreed to purchase additional equity and loan note interests in the Highlands Schools private finance initiative (PFI) project from a subsidiary of 3i Infrastructure.

The transaction takes HICL's total interests in the 30-year project, which runs until 2037, to 100%.

The sale price of £21.2m represents a premium to 3i's most recent valuation for the investment of £19.4m. HICL said the valuation is in line with the current valuation of similar UK PFI projects in the group's portfolio.

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The Highland Schools PFI project is a 30-year concession with the Highland Council in Scotland to design, build and operate eleven urban and rural schools with a total capital value of £143m.

The acquisition was funded from the group's debt facility and takes the group's funding requirement to £78.7m, including the conditional investments announced on February 26th in conjunction with the placing, open offer and offer for subscription of new ordinary shares.

"The acquisition builds on the group's strategy of increasing its shareholdings in existing infrastructure investments," it said.

3i said it expects the proceeds from the sale will be redeployed in the European infrastructure market.

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