3i Infrastructure plc released on July 9th, 2013, a quarterly Interim Management Statement updating on its new investments and deals. The main points of the statement are the following:

• 3i Infrastructure has invested £61.8 million in Cross London Trains, which will invest in rolling stock for the Thameslink commuter rail franchise
• The European portfolio assets continue to perform well, generating income of £17.9 million in the first quarter
• Current cash balances of £97.4 million; renewed £200 million revolving credit facility on 2 May 2013
• 3i Group's proposed acquisition of Barclays Infrastructure Funds Management business to enhance market access

1. Investment in Cross London Trains

On 27 June 2013, the Department for Transport awarded a contract worth circa £1.6 billion for the supply of 1,140 new Desiro City commuter rail carriages for the Thameslink route to Siemens plc and Cross London Trains (XLT). XLT, which is jointly owned by 3i Infrastructure, Innisfree PFI Secondary Fund 2 LP and Siemens Project Ventures (SPV), is the company established to finance and purchase the Desiro City trains from Siemens plc and lease them to the Operator of the Thameslink rail franchise. 3i Infrastructure invested £61.8 million for a 33.3% holding in XLT.

2. Portfolio and returns

The Company's European portfolio is performing well. Portfolio income (dividends and interest receivable from portfolio assets) totalled £17.9 million in the first quarter to 30 June 2013 (£12.2 million in the first quarter to 30 June 2012), reflecting the steady underlying operational and financial performance of the investments.

The valuation of the Company's holding in the 3i India Infrastructure Fund is influenced by a number of market factors, including movements in the share price of Adani Power Limited and foreign exchange fluctuations. As at the close on 8 July 2013, the share price of Adani Power Limited was broadly in line with the share price at 1 April 2013. However, the Indian rupee has continued to depreciate against sterling (11.7% in the period), resulting in foreign exchange losses, as the Company's rupee exposure is unhedged.

3. Balance sheet and liquidity

At 8 July 2013, the Company had cash balances of £97.4 million (after deducting £31.0 million for the payment of the final dividend, expected to be paid on 12 July 2013), reflecting the investment in XLT, income received and costs paid in the period.

On 2 May 2013, the Company entered into a new £200 million three-year revolving credit facility with a syndicate of five major banks. This new facility replaced the £200 million facility entered into in November 2010, which was due to expire in November 2013, on improved terms.

4. 3i Group's proposed acquisition of BIFM

On 24 May 2013, 3i Group plc announced it had submitted an irrevocable offer to Barclays Bank plc to acquire Barclays Infrastructure Funds Management Limited (BIFM), its infrastructure fund management business. This proposed transaction remains subject to the completion of an employee information and consultation process, as well as other regulatory conditions. BIFM has assets under management of approximately £780 million and a team based in London and Paris, which manages two unlisted funds that invest in UK and European PPP and renewable energy projects.

BIFM's expertise is complementary to that of 3i Group, as its team specialises in investing in the PPP market across Europe, with a focus on primary PPP. The integration of the BIFM team within 3i Group will therefore broaden 3i Group's skill set and as such is likely to provide the Company with new investment opportunities.