INPP reaches Financial Close on Sizewell C
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INPP reaches Financial Close on Sizewell C
International Public Partnerships Limited, the FTSE 250-listed infrastructure investment company ('INPP' or 'the Company') is pleased to announce the financial close on its investment in Sizewell C ('the Project'), following the announcement of INPP selected as preferred bidder on 22 July 2025.
Sizewell C is the UK's latest nuclear power station facility and the first to be procured under the Regulated Asset Base ('RAB') model[1]. While the investment provides attractive, regulated, risk-adjusted returns for INPP and its shareholders, the adaptation of the RAB model for Sizewell C represents a significant development in the evolution of UK infrastructure financing.
INPP has committed £254.3 million of equity to Sizewell C's regulated company, to be invested at c.£50 million per annum over the next five years. This investment secures a c.3% shareholding in the Project alongside the UK Government, EDF, Centrica, La Caisse (formerly CDPQ) and the Nuclear Liabilities Fund. INPP's Investment Adviser, Amber Infrastructure Limited ('Amber'), will manage INPP's interest as well as the Nuclear Liabilities Fund's, which together represent a 7.6% shareholding.
All conditions to financial close have now been satisfied, marking the start of revenue commencement. Under the RAB model, INPP will benefit from regulated, inflation-linked returns from day one of its investment, as returns are not exposed to fluctuations in power generation or the market price. Through the construction and early operations phase to the late 2030s, the investment offers a fixed, regulated equity return of 10.8% in real terms, including an annual cash yield of c.6%, resulting in a forecast internal rate of return ('IRR') in the low-teens, well above the returns achievable through share buybacks. These returns are subject to Ofgem's licence and underpinned by a Government Support Package that provides protections in the event of construction cost overruns or delays and ring-fences nuclear-specific risks, consistent with INPP's prior disclosures[2].
Sizewell C is expected to generate c.3.2GW of low-carbon baseload electricity, equivalent to c.7% of the UK's needs, for a minimum of 60 years. It is expected to create 10,000 jobs at peak construction, thousands more in the supply chain and over 1,000 permanent skilled jobs once operational. The Project therefore plays a central role in strengthening UK energy security and achieving the government's net zero objectives.
INPP intends to fund its c.£50 million instalments through its capital recycling programme. Since June 2023, the Company has realised c.£345 million from public private partnership ('PPP'), regulated and operating business assets, at valuations in line, or at a premium to the relevant published valuations. These proceeds, together with surplus operational cash from the portfolio, are expected to fund the instalments. As previously announced, letters of credit under the Company's Corporate Debt Facility will support the equity commitment. To accommodate these letters of credit, the Company has also extended its Corporate Debt Facility by £50 million on the same terms as disclosed in the half-year results. Importantly, this extension is not expected to be used for cash drawings. The Company's previously announced share buyback programme of up to £200 million remains unchanged.
The Board reiterates that following the end of its capital deployment in 2030, INPP's investment in Sizewell C is expected to provide INPP with the following characteristics[3]:
· Attractive, fixed rate of return during construction and early operations, expected to deliver a low-teen IRR, assumed until the late 2030s, and thereafter to be determined by the regulatory incentive mechanism similar to INPP portfolio investments such as Tideway, accretive to the portfolio weighted average discount rate of 9.0% (30 June 2025 as reported)[4];
· Increase to the Company's inflation-linked returns, from 0.7% (30 June 2025 as reported) to 0.8% in 2030[5];
· Reliable cash distributions that increase the length of time the Company is forecast to cover its progressive dividend policy from the current 20 years to over 25 years[6];
· Increase to the weighted average life of the fund by four years at the time of full capital deployment in 2030[7];
· A positive environmental and social benefit with a growing number of equivalent homes powered by low-carbon energy or receiving low-carbon electricity through transmission from 3.7 million (30 June 2025 as reported) to 9.7 million in 2030.
Mike Gerrard, Chair of INPP, commented:
"Reaching financial close on Sizewell C represents a major milestone for INPP. The transaction combines attractive, regulated and inflation-linked returns with robust protections that cap investor downside, and it further strengthens our ability to support shareholders with long-term dividend growth."
Jamie Hossain, Senior Investment Director at Amber Infrastructure and Portfolio Lead of INPP, added:
"Sizewell C is the culmination of several years of work with government and regulators to adapt the RAB model to the nuclear sector. It is a landmark transaction that balances value for money for consumers with a compelling investment proposition, and we are delighted that INPP will play a part in delivering one of the UK's most critical infrastructure projects."
ENDS
NOTES TO EDITORS
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/ Maxime Lopes +44 (0) 7703 330 199 / (0) 7890 896 777
FTI Consulting
About International Public Partnerships ('INPP'):
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 130 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 (as at 31 December 2024).Visit the INPP website at www.internationalpublicpartnerships.com for more information.
[1] Read more on INPP website: https://www.internationalpublicpartnerships.com/investments/case-studies/regulated-asset-base-model
[2] See INPP investor presentation on announcement of the Sizewell C transaction in July 2025 https://www.internationalpublicpartnerships.com/media/zkvd0hln/20250722_inpp_troy-presentation_vf.pdf
[3] All portfolio information as at 31 December 2030 that follows reflects the INPP portfolio as at 30 June 2025, projected forward to 31 December 2030 once the investment in SZC is fully deployed. Assuming all other factors remain constant, the update from the previously reported position is the addition of INPP's investment in SZC. The Company remains committed to its previously announced share buyback programme. This, along with near-term capital deployment such as SZC, is expected to be supported by selective asset realisations.
[4] INPP's portfolio weighted average discount rate as at 30 June 2025.
[5] Calculated by running a 'plus 1.0%' inflation sensitivity for each investment and solving each investment's discount rate to return the original valuation. The inflation-linked return is the increase in the weighted average discount rate.
[6] Following this investment, the Company expects to support its progressive dividend growth policy through portfolio cash flows and continue delivering its share buyback programme, subject to market conditions and capital allocation priorities. The projected cash receipts from the Company's portfolio are such that even if no further investments are made, the Company currently expects to be able to continue to meet its existing progressive dividend policy for at least the next 20 years (increasing to at least 25 years following the investment in SZC, all else being equal). This includes the 2025 and 2026 dividend targets and 2.5% annual dividend growth thereafter.
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