Financial close: £49m UK Education PPP Realisation
Financial close: £49m UK Education PPP Realisation
c.£49 million of proceeds raised from Priority Schools Building Aggregator Programme ('Priority Schools Programme') and Building Schools for the Future ('BSF') investments, part of International Public Partnership Limited's ('INPP') UK Education Public-Private Partnership ('PPP) portfolio
INPP, the listed infrastructure investment company, has completed the recently announced debt financing to release c.£49 million of capital from its Priority Schools Programme investments and 13 BSF portfolio interests, consisting mostly of minority stakes ('the Transaction'). The value of the retained equity interests and funds released from the Transaction is at a premium to the 31 December 2024 valuation. The retained equity interests equate to c.1% of the published NAV as at 31 December 2024.
Following this Transaction, INPP has realised over £315 million of proceeds in the last 24 months across the energy transmission, social and digital infrastructure sectors, equivalent to c.12% of the portfolio based on the latest valuations as at 31 December 2024. All realisations have either been in line with or at a premium to the relevant published valuations.
Overview of Priority Schools Programme and BSF Portfolio
INPP has held its senior debt investments in the Priority Schools Programme since 2015. Alongside partners such as the European Investment Bank and Aviva Investors, INPP has helped fund 46 new schools through the Priority Schools Programme, delivered via a PPP funding model. The model supported the UK Government in delivering additional schools whilst generating stable, long-term, availability-based revenues for investors.
INPP acquired its BSF investments in 2011. BSF is a long-term programme of investments in the UK designed to transform secondary school education by providing learning environments that engage and inspire young people, their teachers and the wider community. INPP has actively pursued a strategy of increasing its BSF holdings to convert minority positions into majority-owned investments wherever possible. Where this has not been feasible, and a sale aligned with the company's interests, INPP has divested its equity interests. A number of remaining BSF minority positions have now been pooled together in this Transaction to allow a financing to realise additional cash proceeds for INPP.
Disciplined approach to capital allocation
The Company reaffirms its disciplined approach to capital allocation, guided by three key principles: prudent use of its Corporate Debt Facility, a targeted realisation programme to demonstrate value and recycle capital, and the strategic deployment of proceeds towards either expanding the share buyback programme or, reinvesting where we see strong strategic alignment and where the long-term characteristics of a new investment are expected to outperform the benefits available through share buybacks.
Share buyback programme
To date, c.£80 million has been used to buy the Company's shares under the buyback programme, which has recently been extended to up to £200 million in size and is currently expected to run until 31 March 2026. Shares will continue to be bought under the programme whilst they trade at a significant discount to their NAV.
Mike Gerrard, Chair of International Public Partnerships, commented: "The completion of this Transaction demonstrates our active portfolio management strategy and ability to unlock value for shareholders in the current environment. By realising a selection of mature assets, INPP is able to enhance shareholder value through capital returns and strategic reinvestment."
ENDS.
For further information:
Erica Sibree +44 (0) 7557 676 499
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Deutsche Numis
Mitch Barltrop / Jenny Boyd +44 (0) 7807 296 032 / (0) 7971 005 577
FTI Consulting
About International Public Partnerships:
INPP is a listed infrastructure investment company that invests in global public infrastructure projects and businesses, which meets societal and environmental needs, both now, and into the future.
INPP is a responsible, long-term investor in over 140 infrastructure projects and businesses. The portfolio consists of utility and transmission, transport, education, health, justice and digital infrastructure projects and businesses, in the UK, Europe, Australia, New Zealand and North America. INPP seeks to provide its shareholders with both a long-term yield and capital growth.
Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and in this capacity is responsible for investment origination, asset management and fund management of the Company.
Amber is part of Boyd Watterson Global Asset Management Group LLC, a global diversified infrastructure, real estate and fixed income business with over $36 billion in assets under management and over 300 employees with offices in eight US cities and presence in twelve countries.
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