Further Investment into Tideway
FURTHER INVESTMENT INTO TIDEWAY
1 June 2022
International Public Partnerships Limited (the 'Company', 'INPP'), the listed infrastructure investment company, announces that it has conditionally agreed to acquire a further shareholding in Thames Tideway Tunnel ('Tideway') the 25-kilometre 'super sewer' being built under the River Thames to create a healthier environment for London.
This opportunity, which is conditional on third party approvals, has arisen as a consequence of another existing investor, DIF Capital Partners, having to dispose of its stake as an underlying investment fund is coming to the end of its life. The stake is being acquired by the other continuing investors in Tideway. If completed, the acquisition would result in INPP increasing its stake in Tideway to approximately 18% and deploying approximately £40 million of additional capital.
Tideway continues to be a successful investment for INPP and will provide several significant environmental and social benefits once operational. Key investment features of Tideway include:
· Its stable and predictable revenues which are regulated by Ofwat
· That it is a long-term investment with a 120-year design life
· Its bespoke regulatory arrangement reflecting the unique nature of the Project
· That the investment is now materially de-risked as tunnelling and underground excavation works have been completed
· That it is a climate-resilient asset constructed with the purpose of cleaning up the River Thames with the aim of reducing polluting discharges into the river by approximately 37 million cubic meters in a typical year
The investment will be funded with proceeds from the capital raise the Company conducted in April 2022. Following the acquisition, the Company is expected to have residual capital raise proceeds of approximately £120 million and its £250 million revolving credit facility undrawn. Accordingly, the Company is well positioned to support its c.£180 million of near-term investment commitments. The transaction is expected to be accretive to the Company's net asset value.
Mike Gerrard, Chair, International Public Partnerships said, "We welcome the opportunity to increase our position in this crucial environmental asset. It is timely that the Company is making a further investment into Tideway as it reaches the conclusion of underground excavation works".
ENDS.
For further information:
Erica Sibree/Amy Edwards +44 (0) 7557 646 499 / (0) 7827 238 355
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 7703 330 199 / (0) 7807 296 032
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 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 consists of over 150 staff who are responsible for the management of, advice on and origination of infrastructure investments.
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