INPP ACQUIRES ADDITIONAL INTEREST IN AUSTRALIAN ROLLING STOCK PROJECT
28 November 2017
International Public Partnerships Limited, the listed infrastructure investment company ("INPP"; the "Company") is pleased to announce the acquisition of an additional interest in the Australian rolling stock public-private partnership, the Reliance Rail PPP Project ("Reliance Rail"; the "Project").
INPP has invested c.A$154 million (c£88 million) and will now own a 33% interest in the project with the remaining interest held by AMP Capital's managed funds.
The Project is a traditional public private partnership (PPP) investment and generates a fully availability-based revenue stream extending to 2044 with the ultimate counterparty being Transport for New South Wales, an executive agency of the New South Wales government.
Reliance Rail was responsible for the financing, designing, manufacturing and continues to be responsible for maintaining 78 next-generation, electrified, "Waratah" train sets (comprising 626 traincars) serving Sydney in New South Wales Australia. The Project is fully operational and yielding and has enjoyed an average availability rate of 99.92% since May 2014. Operational performance risk is fully subcontracted.
INPP has held a small minority interest in the project since 2006 but since 2012 this has been carried at nominal value only. While the operational performance of the Project has been excellent, equity value has been repressed by the complexity of the project's original structure. The current investment and associated refinancing is the result of several years of restructuring activity supported by AMP Capital, Amber Infrastructure (the Company's Investment Adviser), the Project's management team and the New South Wales government. The restructuring process has included the exit of some other original shareholders, the removal of monoline insurers from the capital structure and a complete restructuring of the Project's senior debt resulting in a de-leveraged, lower cost and more sustainable structure.
Once completed the transaction is expected both to restore the original value of the Company's existing investment and, on a blended basis of the new and existing capital, to provide the Company with an attractive return in comparison with other operational PPP projects in the Company's portfolio.
The new investment was funded through the Company's existing corporate debt facility. Following this investment the facility is now either drawn or committed to identified opportunities to a level of c.£100 million out of a total available capacity of £400 million.
ENDS.
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0)20 3727 1046/1039
FTI Consulting
Important Information
This announcement contains information that is inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014.
This announcement is an advertisement. It does not constitute a prospectus relating to the Company and does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefor.
Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These forward-looking statements speak only as at the date of this announcement. The Company, Amber and Numis Securities expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.
Notes to Editors:
About International Public Partnerships:
International Public Partnerships ('INPP') is a listed infrastructure investment company which invests in global public infrastructure projects developed under the 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 Advisor to INPP and has around 100 dedicated staff who manage, advise on and originate projects for INPP.
Visit the INPP website at www.internationalpublicpartnerships.com for more information.
About Amber Infrastructure Group:
Amber is a leading international infrastructure specialist, providing asset management and investment advisory services in respect of around £8 billion of assets in the UK, Europe, Australia and North America. Amber's core business focuses on sourcing, developing, advising on, investing in and managing infrastructure assets within the utilities, PPP, transport, renewable energy and regeneration sectors.
Amber provides investment advisory services to International Public Partnerships
Limited as well as private investment funds, specialising in urban regeneration. Amber is headquartered in London with offices in Munich, Sydney, Melbourne and San Francisco and employs over 100 people, making it one of the largest international infrastructure specialists.
