INPP COMMITS TO INVEST UP TO £45m IN DIGITAL INFRASTRUCTURE
3 July 2017
International Public Partnerships, the FTSE 250 infrastructure investment company ('INPP' or the 'Company'), has committed jointly with HM Government to make an investment in digital infrastructure and particularly fibre optic broadband connections. The Company sees long term parallels between the essential nature of broadband connectivity to the home and workplace, and the established businesses of gas and electricity distribution and transmission with which it is already experienced.
The investment that INPP has committed to will be made through a co-investment vehicle into which INPP has committed up to £45 million and HM Government has committed up to £150 million. This co-investment vehicle has been established as part of the UK Government's Digital Infrastructure Investment Fund initiative launched today by Exchequer Minister Andrew Jones MP at a conference in Peterborough.
The co-investment vehicle has been established as a collective investment vehicle as a consequence of and following a competitive process run by HM Government seeking investment commitment and investment management advice to establish broadband infrastructure investment platforms. Amber Infrastructure and the Company bid for the opportunity jointly and were successful in our joint proposal to HM Government in being selected as one of two preferred bidders for this role. The vehicle is therefore one of two such co-investment vehicles being established under this initiative.
The co-investment vehicle has been named the National Digital Infrastructure Fund ('NDIF'). NDIF will seek out investment opportunities in businesses and projects that own and build digital fibre-based network assets and related infrastructure. The involvement of HM Government is to support its policy of boosting the deployment of full-fibre connections and ultrafast broadband access across the UK.
NDIF will be managed to make lower risk investments that fit INPP's investment mandate and target returns with a focus anticipated on long-term fibre broadband assets which will generate stable returns for the co-investment vehicle and thus INPP. Investments are expected to be made over the next four years and the HM Government commitment is for a ten year period. No investments have been made as yet and this announcement simply records the establishment of NDIF and the maximum future investment commitment of INPP to NDIF. However it is intended that any investment opportunities within the fibre broadband sector that meet INPP's investment mandate will be made through the NDIF structure.
Under the terms of the procurement Amber Infrastructure, the Company's investment adviser, has been appointed to provide investment management services to NDIF and will receive a base fee (and in certain circumstances a performance fee) from NDIF for such services. However, to avoid potential duplicate fees the Company has entered into an arrangement with Amber such that so far as INPP is concerned it will have no liability in respect of additional base fees in excess of those currently chargeable under the Company's existing Investment Advisory Agreement. Amber has also itself committed a £5 million investment to NDIF.
Rupert Dorey, Chairman of INPP commented; "Digital infrastructure is an exciting new asset class. Fibre broadband connections are likely to become essential infrastructure assets in the future. We believe that this commitment offers an early entry point for the Company into a sector with clear lineage to the long-term, stable, inflation linked returns of our utility-network assets.
"INPP will once again benefit from first mover advantage, taking a strong defensive position in an attractive asset class. This investment also reinforces the Company's position as a trusted and preferred investment partner to the public sector."
ENDS.
For further information:
Erica Sibree Amber Fund Management Limited |
+44 (0)20 7939 0558 |
Hugh Jonathan/David Benda Numis Securities |
+44 (0)20 7260 1263/1275 |
Ed Berry/Mitch Barltrop FTI Consulting |
+44 (0)20 3727 1046/1039 |
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 127 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and utility and transmission projects in the UK, 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 Adviser to INPP and consists over 100 dedicated staff who manage, advise on and originate investments for INPP.
Visit the INPP website at www.internationalpublicpartnerships.com for more information.
