LONDON (Alliance News) - International Public Partnership Ltd on Tuesday said its portfolio has been operating and performing in line with expectations so far in 2019.
International PPL's portfolio stood at 130 investments as at May 31. The company invests in public infrastructure projects and businesses and said its portfolio "continues to operate and perform in line with expectations".
In the period from January 1 to May 31, International PPL made three investment commitments, including a sale and purchase agreement announced in April for another 51% of German rail and bus operator BeNEX GmbH, taking International PPL's ownership to 100%.
In April, the company declared its intention to invest as much as GBP12.4 million of additional risk capital in the Midlands Batch Priority Schools project. International PPL also made a further investment in full fibre broadband provider toob in March as part of a GBP45 million commitment.
During the five month period, International PPL invested and committed up to around GBP62.1 million in either new or follow-on investments.
Looking ahead, International PPL is due to make an additional GBP155 million investment in Cadent Gas Ltd by the end of June, taking its stake to 7.3% and qualifying for the permanent right to a board seat in Cadent.
International PPL has a GBP400 million corporate debt facility available until July 2021. The loan is currently undrawn, with GBP1.4 million committed via letters of credit.
"The market for the type of assets in which the company invests remains fundamentally strong, and overall governments and regulators in the countries in which we invest remain committed to the principle of long-term private sector investment," said International PPL.
"In particular we note HM Treasury and the Infrastructure & Projects Authority's current consultation on the mechanisms for the delivery of infrastructure finance which the company, though its investment adviser, is actively engaged in. This forward-looking consultation will help provide a road map for the financing of significant infrastructure in the UK, including the pivotal role that the private sector will play within it," the company added.
International PPL did note the troubled UK landscape, however, including the Labour Party's proposed plans for the nationalisation of UK regulated infrastructure such as railways, water, and energy companies.
Brexit is also being carefully considered and International PPL's investment adviser, Amber Infrastructure Group, "has adopted a position of readiness" and is in "continuous communication" with contractors to provide an early warning and allow the implementation of whichever mitigating measures are necessary.
"Notwithstanding these headwinds, the company remains focused on the completion of its existing commitments, together with continuing to develop suitable opportunities from its strong and well diversified investment pipeline, with particular focus outside the UK. Finally, the company remains confident in its ability to continue to deliver predictable, long-term, inflation-linked returns which it recognises are fundamental to the investment case for its shareholders," said International PPL.
Shares in International PPL were down 0.1% at 150.40 pence on Tuesday morning.
International Public Partnerships (INPP)