International Public Partnerships Regulatory News (INPP)

28 December 2016

INPP to Make Further Investment in Gold Coast Light Rail Project

International Public Partnerships Limited ('the Company', 'INPP'), the listed infrastructure investment company, is pleased to announce that it has acquired a further 3.33% interest in the Gold Coast Light Rail Project (Stages 1 and 2, 'the Project') from Aveng Group ('the Acquisition').

The follow-on investment in the Project has arisen from shareholder rights to acquire proportionate shares from fellow consortium members who choose to dispose their interests. The Acquisition will increase INPP's total investment from 26.67% to 30%.

The Company has been a long-standing shareholder in the Project through the GoldLinQ Consortium alongside Plenary Group, Marubeni Group, Palisade and Keolis. Stage 1 of the Project delivered by the Queensland Government and GoldLinQ, saw the development of a A$1.29 billion, 13km light rail system between Gold Coast University Hospital and Broadbeach. It has been operational since July 2014. Stage 2, comprises a 7.3km extension from the Gold Coast University Hospital north to Helensvale which will link the light rail system to the State's heavy rail line and incorporate three additional stations. Construction completion of Stage 2 of the project is scheduled at the end of the 2017.

Key features of the Project include:

· 13 year concession term ending in 2029 (to coincide with the original project term);

· Revenues linked to the availability of the asset and partially linked to Australian CPI;

· Construction and operations risk fully passed down to McConnell Dowell (Stage 1) and CPB Contractors (formerly Leighton Contractors) (Stage 2) as Design and Build Contractors and Keolis Downer EDI (currently the incumbent Operations and Maintenance Contractors);

· Revenues contracted with the Queensland State Government;

· No refinancing risk;

· Robust financial structure in place with conservative gearing and senior debt provided for the term of the concession by BBVA, Intesa, KfW, EDC, BTMU and Mizuho.

Under the terms of the Acquisition the Company will make immediate and future committed investments totalling approximately A$3.5m. (c.£2.05 million at current exchange rates). Future investments under the terms of the Acquisition will be made during the second half of 2017 and are secured by a letter of credit. The return profile of the investment pursuant to the Acquisition is expected to be consistent with the returns being generated by the Company on its existing investment in the Project.

For further information:

Erica Sibree +44 (0)20 7939 0558Amber Fund Management Limited 

Nick Westlake/Hugh Jonathan +44 (0)20 7260 1345/1263Numis Securities 

Ed Berry/Mitch Barltrop +44 (0)20 3 727 1046 / 1039FTI Consulting

Notes to Editors:

About Gold Coast Light Rail Extension

Further information about the project is available at http://www.gclrstage2.com.au/stage2.

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 over 120 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport, waste water and utility and transmission projects in the U.K., 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 of typically 25-40 year concessions.

Amber Infrastructure Group (Amber) is the Investment Advisor to INPP and consists of over 90 dedicated staff who manage, advise on and originate projects for INPP.