Financial Close For Fourth PSBP Aggregator Funding

13 August 2015

INPP reaches financial close on fourth Priority School Building Programme 'Aggregator' funding tranche

International Public Partnerships Limited ('the Company', 'INPP') is pleased to announce that the Amber Consortium, of which INPP is part, has reached financial close on the fourth of five privately financed batches of schools being delivered through the Priority Schools Building Programme (PSBP).

The project uses an innovative financing model based upon the establishment of a funding vehicle known as the 'Aggregator'. This was established by the Company in November 2014. One of the key features of the Aggregator is the ability to warehouse loans and thereby aggregate total financing requirements across all five schools batches. The Aggregator is financed by the Amber Consortium, which includes INPP with Aviva Investors and the European Investment Bank also providing senior debt. 

The fourth tranche of funding will support the development of eight secondary schools on existing and adjacent sites in the Midlands region of England and operations over a 25 year period. The total capital expenditure on the schools in this batch is approximately £142 million, with the Aggregator providing £137 million, of which the Company will fund £9.8 million with European Investment Bank and Aviva providing the remainder. The project sponsors who will provide the balance of the equity and subordinated debt include Carillion Private Finance Limited, Equitix Limited and IUK Investments Limited (HM Treasury), the Private Equity Unit set up to invest in Government infrastructure projects under PF2.

The PSBP is a centrally managed government programme set up to address the needs of the schools most in need of urgent repair. Through the programme, 260 schools will be rebuilt or have their condition needs met by the Education Funding Agency (EFA). As part of the programme, 46 schools in five batches with a value of circa £700 million are being delivered via private finance funding using the PF2 structure.

The investment will be funded through the Company's corporate debt facility. INPP expects to provide up to an additional c.£11 million funding to the remaining batch. Financial close of the final scheme is expected in the course of 2015.

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 the Priority Schools Rebuilding Programme

Further information about the programme is available at www.gov.uk/government/publications/psbp-overview/priority-school-building-programme.

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 116 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and utility and transmission projects in the U.K., Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term yield and capital growth through investment across both construction and operational phases of 25-40 year concessions.

Amber Infrastructure Group (Amber) is the Investment Advisor to INPP and consists of over 80 dedicated staff who manage, advise on and originate projects for INPP.