Australia and New Zealand Banking Group Ltd. — Capital/Financing Update 2007

Aug 15, 2007

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ASX Release

16 August 2007

Entry into A$518 million debt facility

Babcock & Brown Infrastructure (ASX: BBI) today announced that it has entered into a limited recourse acquisition debt facility with respect to the Alinta acquisition. The facility which has been concluded with ANZ, BNP Paribas, Commonwealth Bank of Australia and Dexia allows BBI to borrow up to A$518m, on terms consistent with information previously provided to the market in relation to the Alinta Scheme of Arrangement.

BBI’s acting CEO Jeff Kendrew said of the entry into the facility “The fact that we have been able to secure debt financing in the current market demonstrates the underlying strength of BBI and of the businesses being acquired. It also highlights the benefits of the Babcock & Brown relationship to BBI, as Babcock & Brown, through its financial expertise and key lender relationships was able to negotiate attractive terms.”

Entry into the debt facility means that following the Alinta Scheme, BBI will have approximately $650 million dollars available to apply towards attractive acquisition opportunities, without the need to raise further equity capital. This is following the additions to BBI’s growing portfolio of European ports that were recently announced to the market.

ENDS

Further Enquiries

Jeff Kendrew Helen Liossis Acting Chief Executive Officer Investor Relations Manager Babcock & Brown Infrastructure Babcock & Brown Infrastructure +61 2 9229 1800 +61 2 9229 1800

Babcock & Brown Infrastructure

Babcock & Brown Infrastructure (ASX: BBI) is a specialist infrastructure entity which provides investors access to a diversified portfolio of quality infrastructure assets. BBI’s investment strategy focuses on acquiring, managing and operating quality infrastructure assets in Australia and internationally. BBI’s portfolio is diversified across two asset classes:

Energy Transmission and Distribution

• Powerco - the second largest electricity and gas distribution business in New Zealand;

• IEG - a natural gas and LPG distribution and supply business in the United Kingdom, Channel Islands, Isle of Man and Portugal; and

• Cross Sound Cable - a HVDC transmission cable which links the electricity grids of Long Island and Connecticut in the United States; and

• Alinta Assets - BBI announced on 30 March 2007 that it had joined the Babcock & Brown (BNB) and Singapore Power International Limited (SPI) consortium whose revised Proposal on 11 May 2007 for the whole of the issued share capital of Alinta Limited (Alinta) has been conditionally recommended as the preferred Offer by the Alinta Board. If the Scheme is approved, BBI would be acquiring the following energy transmission and distribution assets and operations and maintenance (O&M) businesses:

  • Tasmanian Gas Pipeline (TGP) - 100% ownership;

  • AlintaGas Networks (AGN) - 74.1% ownership;

  • Multinet Gas (MGN) - 20.1% ownership;

  • Dampier to Bunbury Natural Gas Pipeline (DBNGP) - up to 20% ownership; and

  • Western Australian based O&M business (excluding the Parmelia O&M contract) which services DBNGP, AGN and other external contracts - 100% ownership.

TRANSPORT INFRASTRUCTURE

• Dalrymple Bay Coal Terminal - one of the worlds largest coal export facilities, located in Queensland, Australia;

• PD Ports - a major British ports operator and owner of the second largest port in the United Kingdom;

• WestNet Rail - a 51% equity interest in a rail infrastructure business based in Western Australia;

• A European ports portfolio which now includes:

• Water Container Transport - a 51% equity interest in a canal based container port in Belgium with an option to acquire the remaining 49% equity interest; and

• Tarragona Port Services - a 51% equity interest in a Spanish port terminal and maritime freight service to five dry bulk concessions, with an option to acquire the remaining 49% equity interest by 30 June 2009.

• Manuport - a majority equity interest in the leading specialty dry bulk port operator in Antwerp, with sister operations in Ghent and Le Havre.

• TRI - a majority equity interest in the leading bulk port operator in Italy, with operations in Genoa, Savona and Venice.

BBI is managed by Babcock & Brown Infrastructure Management Pty Limited (BBIM), a subsidiary of Babcock & Brown Limited (ASX: BNB), a global investment and advisory firm with longstanding capabilities in structured finance and the creation, syndication and management of asset and cash flow-based investments, particularly infrastructure investments.

BBI is listed on the Australian Stock Exchange and has a market capitalisation of approximately A$2.8 billion.

For further information please visit our website: www.bbinfrastructure.com