International Public Partnership Ld Financial Close For Second PSBP Aggregator Funding (9704H)

TIDMINPP

RNS Number : 9704H

International Public Partnership Ld

20 March 2015

INPP reaches financial close on second Priority School Building Programme 'Aggregator' funding tranche

International Public Partnerships Limited ('the Company', 'INPP') is pleased to announce that the Amber Consortium, of which INPP is part, has reached financial close on the second privately financed batch of five batches of schools being delivered through the Priority Schools Building Programme (PSBP).

The project uses a unique financing model based upon the establishment of a funding vehicle known as the 'Aggregator'. One of the key features of the Aggregator is the ability to warehouse loans and thereby aggregate total financing requirements across all five schools batches.

The second tranche of funding will support the development of seven secondary schools on existing sites in Hertfordshire, Luton and Reading. The total capital expenditure on the schools in this batch is GBP144 million, with the Aggregator providing GBP137 million, of which the Company will fund approximately GBP10.2 million. The residual funding will be provided by the project sponsors including Interserve Construction Limited, Kajima Partnerships Limited and IUK Investments Limited (HMT).

The PSBP is a centrally managed government programme set up to address the needs of the schools most in need of urgent repair. Through the programme, 260 schools will be rebuilt or have their condition needs met by the Education Funding Agency (EFA), with all schools within the programme delivered by the end of 2017. As part of the programme, 46 schools in five batches with a value of circa GBP700 million are being delivered via private finance funding using the PF2 structure - the government's new approach to private finance.

The Aggregator is financed by the Amber Consortium, which includes INPP and Aviva Investors, with European Investment Bank also providing senior debt.

INPP expects to provide up to an additional c.GBP60 million funding to the remaining three batches. Financial close of these schemes is expected in the course of 2015.

For further information:

   Erica Sibree                                                    +44 (0)20 7939 0558

Amber Fund Management Limited

   Nick Westlake/Hugh Jonathan                            +44 (0)20 7260 1345/1263

Numis Securities

   Ed Berry/Mitch Barltrop                                     +44 (0)20 3 727 1046 / 1039

FTI Consulting

Notes to Editors:

About the Priority Schools Rebuilding Programme

Further information about the programme is available at www.gov.uk/government/publications/psbp-overview/priority-school-building-programme.

About International Public Partnerships (INPP):

International Public Partnerships (INPP) is a listed infrastructure investment company which invests in global public infrastructure projects developed under the public private partnerships (PPP), private finance initiative (PFI), regulated asset and other similar procurement methods.

Listed in 2006, INPP is a long-term investor in 112 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and utility and transmission projects in the U.K., Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term 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 over 80 dedicated staff who manage, advise on and originate projects for INPP.

This information is provided by RNS

The company news service from the London Stock Exchange

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