International Public Partnership Ld Financial Close on 10 BSF Interests (0783I)
August 25 2016 - 2:01AM
UK Regulatory
TIDMINPP
RNS Number : 0783I
International Public Partnership Ld
25 August 2016
25 August 2016
INPP reaches financial close on ten Building Schools for the
Future (BSF) interests
Further to its announcement on 1 July 2016, International Public
Partnerships Limited ("INPP" or the "Company") is pleased to
announce that it has reached financial close on ten Building
Schools for the Future ("BSF") interests from Balfour Beatty,
investing GBP72.3 million.
The investment opportunity was secured through pre-emption
rights that INPP gained as part of its purchase of Building Schools
for the Future Investments LLP ("BSFI"). INPP acquired BSFI from
the Department of Education and Partnerships UK in August 2011.
Owing to its established position in UK education
infrastructure, INPP already held 10% interests in seven of the
Balfour Beatty investments in question, and as a result of the
transaction has increased its stake to 90% in each scheme. INPP has
also acquired new interests of between 80% to 99% in a further
three BSF schemes previously under Balfour Beatty's ownership.
Like the other BSF projects in which INPP invests, these
investments meet INPP's investment criteria:
-- The projects have long operational lives with a remaining
operational term of on average, 21 years;
-- The investments conform to the typical UK BSF PFI project
funding structure with a well-established and standard form risk
framework;
-- The underlying projects are operational and yielding and will
contribute to INPP's portfolio return immediately upon
acquisition;
-- The investments' debt is non-recourse at the project level
and matched to the life of the project.
The investment has been completed at a level that offers a
projected return that INPP regards as attractive for its investors
in current market conditions.
As expected, the Company funded the acquisition from the GBP125
million capital raised in July 2016. Following this transaction,
the balance of the funds raised is GBP26.6 million, all of which is
earmarked for committed investments, notably the Tideway project.
In addition, with respect to its GBP300 million revolving corporate
debt facility, the Company currently has drawn c.GBP141.6 million
by way of letters of credit. Again, these drawings support the
Company's future investment obligations including its investment
commitments to the Tideway project.
For further information:
Erica Sibree
Amber Infrastructure +44 (0)20 7939 0558
Nick Westlake/Hugh Jonathan +44 (0)20 7260 1345 / 1263
Numis Securities
Ed Berry +44 (0)20 3 727 1046
FTI Consulting
Notes to Editors:
About the BSF portfolio
The BSF programme was an initiative launched in 2004 by the
previous government with the aim of rebuilding or re-modelling
every secondary school in England over a 20 year period. Although
the longer term BSF programme has now been replaced, the schools
which were the subject of the original programme continue to be
actively developed and managed.
INPP originally invested into the BSF programme when it acquired
the government's interest in the BSFI in August 2011. Since this
time, the Company has built up considerable experience in managing
investments in schools delivered under PFI and PPP programmes, and
the acquisition of new interests complement the existing portfolio
of over 200 individual schools across the UK. Following this
acquisition, school projects now represent c.26% of the Company's
investment fair value (taking into account transactions since 31
December 2015).
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 122 social and
transport infrastructure projects, including schools, hospitals,
courts, police headquarters, transport, utility and transmission
projects in the U.K., Europe, Australia and North America. INPP
seeks to provide its shareholders with both a long-term yield and
capital growth through investment across both construction and
operational phases typically of 25-40 year concessions.
Amber Infrastructure Group ('Amber') is the Investment Advisor
to INPP and consists around 90 dedicated staff who manage, advise
on and originate projects for INPP.
Visit the INPP website at
www.internationalpublicpartnerships.com for more information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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