International Public Partnerships Further Investment into Tideway (5308N)
June 01 2022 - 1:01AM
UK Regulatory
TIDMINPP
RNS Number : 5308N
International Public Partnerships
01 June 2022
FURTHER INVESTMENT INTO TIDEWAY
1 June 2022
International Public Partnerships Limited (the 'Company',
'INPP'), the listed infrastructure investment company, announces
that it has conditionally agreed to acquire a further shareholding
in Thames Tideway Tunnel ('Tideway') the 25-kilometre 'super sewer'
being built under the River Thames to create a healthier
environment for London.
This opportunity, which is conditional on third party approvals,
has arisen as a consequence of another existing investor, DIF
Capital Partners, having to dispose of its stake as an underlying
investment fund is coming to the end of its life. The stake is
being acquired by the other continuing investors in Tideway. If
completed, the acquisition would result in INPP increasing its
stake in Tideway to approximately 18% and deploying approximately
GBP40 million of additional capital.
Tideway continues to be a successful investment for INPP and
will provide several significant environmental and social benefits
once operational. Key investment features of Tideway include:
-- Its stable and predictable revenues which are regulated by Ofwat
-- That it is a long-term investment with a 120-year design life
-- Its bespoke regulatory arrangement reflecting the unique nature of the Project
-- That the investment is now materially de-risked as tunnelling
and underground excavation works have been completed
-- That it is a climate-resilient asset constructed with the
purpose of cleaning up the River Thames with the aim of reducing
polluting discharges into the river by approximately 37 million
cubic meters in a typical year
The investment will be funded with proceeds from the capital
raise the Company conducted in April 2022. Following the
acquisition, the Company is expected to have residual capital raise
proceeds of approximately GBP120 million and its GBP250 million
revolving credit facility undrawn. Accordingly, the Company is well
positioned to support its c.GBP180 million of near-term investment
commitments. The transaction is expected to be accretive to the
Company's net asset value.
Mike Gerrard, Chair, International Public Partnerships said, "We
welcome the opportunity to increase our position in this crucial
environmental asset. It is timely that the Company is making a
further investment into Tideway as it reaches the conclusion of
underground excavation works".
ENDS.
For further information:
Erica Sibree/Amy Edwards +44 (0) 7557 646 499 / (0) 7827 238
355
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 7703 330 199 / (0) 7807 296
032
FTI Consulting
About International Public Partnerships:
INPP is a listed infrastructure investment company that invests
in global public infrastructure projects and businesses, which
meets societal and environmental needs, both now, and into the
future.
INPP is a responsible, long-term investor in over 140
infrastructure projects and businesses. The portfolio consists of
utility and transmission, transport, education, health, justice and
digital infrastructure projects and businesses, in the UK, Europe,
Australia and North America. INPP seeks to provide its shareholders
with both a long-term yield and capital growth.
Amber Infrastructure Group ('Amber') is the Investment Adviser
to INPP and consists of over 150 staff who are responsible for the
management of, advice on and origination of infrastructure
investments.
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END
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