Financial Close on final PSBP Aggregator Funding
27 April 2016
INPP reaches financial close on final Priority Schools Building Programme 'Aggregator' funding tranche
International Public Partnerships Limited ('the Company', 'INPP') has announced that the Amber Consortium, of which INPP is part, has reached financial close on the last of the five privately financed batches of schools being delivered through the Priority Schools Building Programme (PSBP).
The project uses an innovative financing model based upon the establishment of a funding vehicle known as the 'Aggregator'. This was established by the Company in November 2014. 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 fifth tranche of funding will support the development and operation of seven new-build secondary schools in Yorkshire over a 25-year period. The total capital expenditure on the schools in this batch is approximately £129 million, with the Aggregator providing £118 million.
The Company will fund £5.1 million with the European Investment Bank and Aviva providing the remainder. The project sponsors who will provide the balance of the equity and subordinated debt include Laing O'Rourke, Equitix and IUK Investments Limited (HM Treasury), the private equity unit established to invest in government infrastructure projects under PF2.
The investment will be funded through the Company's existing cash resources and debt facility. Following financial close of the fifth and final batch, the Company will have approximately £145 million of uncommitted credit available under its £300 million revolving credit facility (after taking into account its future investment obligations into new projects including its investment commitments to the Thames Tideway Tunnel project).
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 https://www.gov.uk/government/publications/psbp-overview/priority-school-building-programme-overview
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 over 120 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport, waste water and 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 of typically 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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