UPDATE 2-HSBC Infrastructure ups dividend as profits rise

* H1 pre-tax profit up 89 pct to 8.5 mln pounds

* Interim dividend at 3.2 pence, up 2.4 pct

* Could raise up to 80 mln pounds in share issue

* Shares close down 0.85 pct

(Adds adviser, analyst comments, share offer details)

By Greg Roumeliotis

AMSTERDAM, Nov 12 (Reuters) - HSBC Infrastructure (HICL) (HICL.L), the banking group's listed infrastructure fund, on Thursday posted a sharp rise in first-half profits and hiked its interim dividend as portfolio performance improved.

The fund also said in a statement after market close on Thursday that the C share issue it had already announced earlier this month would involve placing up to 80 million new shares at 1 pound each, raising 80 million pounds.

Pre-tax profit for the six months to end-September rose 89 percent to 8.5 million pounds ($14 million) helped by favourable interest rate swap, inflation swap and bond indexation movements.