UPDATE REGARDING EXPOSURE TO CARILLION PLC
15 January 2018
International Public Partnerships Limited ('the Company', 'INPP'), the listed infrastructure investment company, notes the recent announcement by Carillion plc ('Carillion') that it has taken steps to enter into compulsory liquidation with immediate effect.
The asset management team within the Investment Adviser has been aware for some time of the issues affecting Carillion plc and has developed contingency plans accordingly. These involve the asset manager working to transition the projects for which Carillion Services Limited ('Carillion FM') have facilities management responsibilities to a new facilities management contractor or contractors. Over recent months the asset manager has had specific discussions with identified alternative contractors to replace Carillion on affected projects and these will now be further developed. In the meantime, all the affected facilities are currently open and operating normally. Carillion FM have also indicated that they expect to continue to discharge all their facilities management obligations in line with their contractual requirements in the short term.
INPP advises that facilities management services are provided by Carillion FM to c.3% (by investment fair value) of the Company's portfolio. All the affected projects are operational. The liquidation of Carillion plc is also in some cases an event entitling project lenders to "lock up" distributions from projects where they have guaranteed the performance of the facilities management services. While the occurrence of any such "lock up" would not be expected to have any material impact on INPP's cashflows for the foreseeable future it would require the taking of remedial action and the contingency planning noted above has taken this into account.
The Company does not currently believe that the liquidation of Carillion is likely to have any significant valuation impact on the Company but will continue to monitor and manage the situation as it evolves.
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
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 public private partnerships ('PPP'), regulated asset and other similar procurement methods.
Listed in 2006, INPP is a long-term investor in 128 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.
