Financial Close For Third PSBP Aggregator Funding
26 March 2015
INPP reaches financial close on third 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 third 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 third tranche of funding will support the development of five secondary schools and seven primary schools on existing sites in the North West of England and operations over a 25 year period. The total capital expenditure on the schools in this batch is £123 million, with the Aggregator providing £111 million, of which the Company will fund approximately £8.4 million with EIB and Aviva providing the residual. The project sponsors will provide equity and subordinated debt including Morgan Sindall Investment Limited, Equitix Limited and IUK Investments Limited (HM Treasury), the Private Equity Unit set up to invest in Government infrastructure projects under PF2.
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). As part of the programme, 46 schools in five batches with a value of circa £700 million are being delivered via private finance funding using the PF2 structure.
The Aggregator is financed by the Amber Consortium, which includes INPP and Aviva Investors, with European Investment Bank also providing senior debt.
The acquisition will be funded through the Company's corporate debt facility, which will be £27.2 million drawn following the investment. INPP expects to provide up to an additional c.£50 million funding to the remaining two 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
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