Intention to Raise Capital
3 November 2009
International Public Partnerships Considering Capital Raising Options
for New Investment Opportunities
International Public Partnerships (INPP or the Company) is pleased to advise that the Company is considering its options with respect to the raising of additional capital.
The Company last raised capital in April 2008. This capital was substantially invested by July 2008, ahead of the targeted timetable, and subsequent investments have been funded through the use of income reserves and debt.
The Board notes that in the current market INPP has a number of highly attractive investment opportunities available to it. The Board also notes that the Company's acquisitions since November 2006 have been accretive to the Company's medium term return target of 8-9% per annum and expects this to continue to be the case.
Specifically, the Company sees opportunities arising from two sources:
Firstly, the strong pipeline of transactions being developed by the Amber Infrastructure Group, the Company's investment adviser. This includes the £50million PPP redevelopment of Liverpool Central Library for which the Amber Infrastructure Group was awarded preferred bidder status last Friday, 30 October 2009, as well as ten further U.K. and European PPP projects where exclusivity exists.
The Liverpool project, by way of example, is expected to meet all of the Company's key investment criteria including:
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Long term, 27.5 year concession
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Project revenues linked to inflation (UK RPIx)
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Project revenues guaranteed by Liverpool City Council
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Majority ownership and influence over project operations, including Board representation and asset management
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Subject to financial close, long-term debt on a matched funded basis and 100% swapped at a fixed rate for the life of the concession.
In addition, the Amber Infrastructure Group has a significant number of other projects it is currently bidding, including three opportunities where Amber is one of two bidders in the final competitive phase. INPP has a preferential right to invest in all projects completed by the Amber Infrastructure Group.
Secondly, the Company and its investment adviser are being approached with an increasing number of opportunities to invest in PPP projects (both in the U.K. and overseas) which have been developed by third parties and who are seeking new long term investors in these projects. Typically these projects are at a mature or semi-mature stage and would offer additional yield to INPP.
The Board's policy is to seek investment opportunities in both early stage PPP projects (which offer capital growth potential) and in more mature projects (which provide additional support to the Company's long term income projections and thus the ability to continue to grow distributions).
Keith Dorrian, Chairman of INPP said: "The strong pipeline of opportunities demonstrates the benefit of the relationship with Amber Infrastructure. There are now a series of projects being finalised in respect of which the Company will have the right to invest. In addition, there is a steady stream of enquiries from vendors keen to sell existing assets to INPP.
As indicated in my Statement at the time of the Company's interim results, the Board is now considering options for raising further equity capital. Recent investments funded through the Company's debt facility have projected returns in excess of the Company's target level of return of 8-9%. Current opportunities in the market indicate to me that, with additional capital, the Company can expect to continue to deliver enhanced returns to investors, and grow dividends."
For further information:
Bianca Francis
Amber Fund Management Limited
+44 (0)20 7939 0558
bianca.francis@amberinfrastructure.com
Nick Westlake
Numis Securities Limited
+44 (0)20 7260 1345
n.westlake@numiscorp.com
This information is provided by RNS
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