INFRATIL LIMITED. — Capital/Financing Update 2012

Oct 14, 2012

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8 October 2012

Name and address

CSN/Holder Number: ********

Dear Bondholder

INFRATIL INFRASTRUCTURE BONDS MATURING 15 NOVEMBER 2012

Infratil Limited advises that the Infrastructure Bonds maturing 15 November 2012 ("Series 2012 Bonds") will be redeemed for cash on 15 November 2012 and not converted into shares in Infratil Limited.

Infratil is considering making a new offer (“Bond Offer”) of unsecured, unsubordinated, fixed interest bonds ("New Bonds") to the public, comprising a combined general offer and an exchange offer. The net proceeds of the Bond Offer will be used to refinance the Series 2012 Bonds and by Infratil for general corporate purposes.

Under the exchange offer of New Bonds, Infratil is offering holders of the Series 2012 Bonds the opportunity to exchange all or some of their Series 2012 Bonds for New Bonds that would mature on 15 November 2018. It is expected that full details of the Bond Offer will be released, and the offer will open, in the week of 15[th] October 2012, once a simplified disclosure prospectus has been registered.

Infratil is seeking preliminary indications of interest in the exchange offer. Parties interested in the exchange offer can register their interest now with Link Market Services (contact details below) or their usual financial advisor and they will then send you a simplified disclosure prospectus once registered, including the exchange offer application form.

Link Market Services +64 9 375 5998.

Indications of interest will not involve an obligation or commitment of any kind. No money is currently being sought and no application for New Bonds will be accepted or money received unless the subscriber has received a copy of a simplified disclosure prospectus in relation to the New Bonds.

Series 2012 Bonds that are not exchanged under the Bond Offer will be redeemed for cash on their maturity date in accordance with their existing terms and conditions.

If you need to update your details with Link Market Services please contact Link Market Services on +64 9 375 5998.

Yours sincerely

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Kevin Baker

Chief Financial Officer /Company Secretary

Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 Fax +64-4-473 2388 www.infratil.com

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