International Public Partnership Ld £45m Digital Infrastructure Investment Commitment (8515J)
July 03 2017 - 1:00AM
UK Regulatory
TIDMINPP
RNS Number : 8515J
International Public Partnership Ld
03 July 2017
INPP COMMITS TO INVEST UP TO GBP45m 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 GBP45
million and HM Government has committed up to GBP150 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 GBP5 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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