REG - International PPL - Further Investment into Tideway

International Public PartnershipsAnnouncement

01/06/2022 07:00

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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 £40 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 £120 million and its
£250 million revolving credit facility undrawn. Accordingly, the Company is
well positioned to support its c.£180 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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