Gunfleet Sands OFTO Reaches Financial Close (6682K)
July 19 2011 - 10:13AM
UK Regulatory
TIDMINPP
RNS Number : 6682K
International Public Partnership Ld
19 July 2011
19 July 2011
INTERNATIONAL PUBLIC PARTNERSHIPS LIMITED
Gunfleet Sands Offshore Transmission Project Reaches Financial
Close
International Public Partnerships Limited (INPP) is pleased to
announce that Transmission Capital Partners, the consortium
comprising INPP, Amber Infrastructure and Transmission Capital has
achieved financial close on the Gunfleet Sands offshore
transmission project.
This is the second offshore transmission project that
Transmission Capital Partners has closed under Ofgem's initial
round of tenders for the long-term licence and operation of
offshore transmission assets in the United Kingdom.
Gunfleet Sands is an offshore wind farm, located 7km off the
coast of Clacton-on-Sea, Essex with a generation capacity of
approximately 173MW. The asset comprises the onshore and offshore
substations and under-sea cables connecting the mainland
electricity grid network to Gunfleet Sands. The project has been
operational since early 2010, which will allow for an immediate
yield to INPP investors.
Key features of the project are:
-- 20 year revenue term, with the potential for extension after
this initial period
-- Availability based revenue stream, with protected downside
(potential deductions capped at 10% of base revenue in any year),
and fully linked to UK RPI
-- No demand based risk with no exposure (either revenue or
penalties) to wind farm performance or credit
-- Revenues guaranteed by National Grid Electricity Transmission
plc (NGET), a subsidiary of National Grid, in their statutory
ring-fenced role as national electricity systems operator (NGET
rated 'A-' S&P; 'A' Fitch)
-- Robust financial structure with conservative gearing and debt
in place for the duration of the concession, ensuring no
refinancing risk
-- No construction risk, given the operational status of the
project
INPP is investing 100% of the equity and subordinated debt up to
GBP11m. Senior debt has been provided by Barclays, BNP Paribas and
Lloyds.
The expertise and experience of the Transmission Capital
Partners consortium has enabled it to successfully bid for four of
the nine offshore transmission projects awarded by Ofgem under its
initial round of tenders. It is scheduled to reach financial close
on the remaining two schemes by the end of 2011.
Furthermore, the consortium is shortlisted for another three
projects under Ofgem's second round of tenders, which are due to be
awarded in 2011 and 2012. New opportunities with a total
development value of up to GBP14bn are expected to be tendered to
the private sector, during the next nine years.
Giles Frost, Director of Amber, said: "We are delighted to have
brought our second offshore transmission project to financial
close. The project further demonstrates the long-term commitment by
INPP and Amber and to the offshore transmission and renewable
energy sectors, and will provide our shareholders with steady,
long-term revenue streams and an increasingly diversified
portfolio."
A copy of the Ofgem press release can be found at
www.ofgem.gov.uk
For further information:
Erica Sibree +44 (0)20 7939 0558 Amber Fund Management
Limited
Hugh Jonathan/Nick Westlake +44 (0)20 7260 1263/1345 Numis
Securities
Ed Gascoigne-Pees/Ed Berry +44 (0)20 7269 7132/7297 Financial
Dynamics
Notes to Editors:
About International Public Partnerships (INPP):
International Public Partnerships Limited (INPP) is a listed
infrastructure investment company which invests in global public
infrastructure projects developed under the public private
partnerships (PPP) and private finance initiative (PFI) procurement
methods.
Listed in 2006, INPP is a long-term investor in 60 social and
transport infrastructure projects, including schools, hospitals,
courts, police headquarters and transport projects in the U.K.,
Europe, Australia and Canada. INPP seeks to provide its
shareholders with both a long-term government-backed yield and
capital growth through investment across both construction and
operational phases of 25-40 year concessions.
Amber Infrastructure Group (Amber) is the Investment Advisor to
INPP and consists of more than 50 dedicated infrastructure
specialists which originate and source a strong pipeline of
projects for INPP.
Visit the INPP website at
www.internationalpublicpartnerships.com for more information.
About Transmission Capital:
Transmission Capital was established in 2008 to procure,
construct, own and operate transmission assets, initially those in
the UK being tendered through the new offshore transmission
regulatory regime being overseen by Ofgem. It also provides
transmission development advisory services to electricity industry
stakeholders, including many offshore wind developers. The senior
management team has over 70 years experience in the UK electricity
supply industry, the majority of which has been focussed on the
development, procurement and construction of major offshore
transmission and wind projects.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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