Financial Close on 10 BSF Interests
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 £72.3 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 £125 million capital raised in July 2016. Following this transaction, the balance of the funds raised is £26.6 million, all of which is earmarked for committed investments, notably the Tideway project. In addition, with respect to its £300 million revolving corporate debt facility, the Company currently has drawn c.£141.6 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
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