REG - International PPL - INPP reaches Financial Close on Sizewell C

International Public PartnershipsAnnouncement

Tue 12:45

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RNS Number : 1435G  International Public Partnerships  04 November 2025

INPP reaches Financial Close on Sizewell C

International Public Partnerships Limited, the FTSE 250-listed infrastructure
investment company ('INPP' or 'the Company') is pleased to announce the
financial close on its investment in Sizewell C ('the Project'), following the
announcement of INPP selected as preferred bidder on 22 July 2025.

Sizewell C is the UK's latest nuclear power station facility and the first to
be procured under the Regulated Asset Base ('RAB') model 1  (#_ftn1) . While
the investment provides attractive, regulated, risk-adjusted returns for INPP
and its shareholders, the adaptation of the RAB model for Sizewell C
represents a significant development in the evolution of UK infrastructure
financing.

INPP has committed £254.3 million of equity to Sizewell C's regulated
company, to be invested at c.£50 million per annum over the next five years.
This investment secures a c.3% shareholding in the Project alongside the UK
Government, EDF, Centrica, La Caisse (formerly CDPQ) and the Nuclear
Liabilities Fund. INPP's Investment Adviser, Amber Infrastructure Limited
('Amber'), will manage INPP's interest as well as the Nuclear Liabilities
Fund's, which together represent a 7.6% shareholding.

All conditions to financial close have now been satisfied, marking the start
of revenue commencement. Under the RAB model, INPP will benefit from
regulated, inflation-linked returns from day one of its investment, as returns
are not exposed to fluctuations in power generation or the market price.
Through the construction and early operations phase to the late 2030s, the
investment offers a fixed, regulated equity return of 10.8% in real terms,
including an annual cash yield of c.6%, resulting in a forecast internal rate
of return ('IRR') in the low-teens, well above the returns achievable through
share buybacks. These returns are subject to Ofgem's licence and underpinned
by a Government Support Package that provides protections in the event of
construction cost overruns or delays and ring-fences nuclear-specific risks,
consistent with INPP's prior disclosures 2  (#_ftn2) .

Sizewell C is expected to generate c.3.2GW of low-carbon baseload electricity,
equivalent to c.7% of the UK's needs, for a minimum of 60 years. It is
expected to create 10,000 jobs at peak construction, thousands more in the
supply chain and over 1,000 permanent skilled jobs once operational. The
Project therefore plays a central role in strengthening UK energy security and
achieving the government's net zero objectives.

INPP intends to fund its c.£50 million instalments through its capital
recycling programme. Since June 2023, the Company has realised c.£345 million
from public private partnership ('PPP'), regulated and operating business
assets, at valuations in line, or at a premium to the relevant published
valuations. These proceeds, together with surplus operational cash from the
portfolio, are expected to fund the instalments. As previously announced,
letters of credit under the Company's Corporate Debt Facility will support the
equity commitment. To accommodate these letters of credit, the Company has
also extended its Corporate Debt Facility by £50 million on the same terms as
disclosed in the half-year results. Importantly, this extension is not
expected to be used for cash drawings. The Company's previously announced
share buyback programme of up to £200 million remains unchanged.

The Board reiterates that following the end of its capital deployment in 2030,
INPP's investment in Sizewell C is expected to provide INPP with the following
characteristics 3  (#_ftn3) :

·      Attractive, fixed rate of return during construction and early
operations, expected to deliver a low-teen IRR, assumed until the late 2030s,
and thereafter to be determined by the regulatory incentive mechanism similar
to INPP portfolio investments such as Tideway, accretive to the portfolio
weighted average discount rate of 9.0% (30 June 2025 as reported) 4  (#_ftn4)
;

·      Increase to the Company's inflation-linked returns, from 0.7% (30
June 2025 as reported) to 0.8% in 2030(( 5  (#_ftn5) ));

·      Reliable cash distributions that increase the length of time the
Company is forecast to cover its progressive dividend policy from the current
20 years to over 25 years(( 6  (#_ftn6) ));

·      Increase to the weighted average life of the fund by four years
at the time of full capital deployment in 2030(( 7  (#_ftn7) ));

·      A positive environmental and social benefit with a growing number
of equivalent homes powered by low-carbon energy or receiving low-carbon
electricity through transmission from 3.7 million (30 June 2025 as reported)
to 9.7 million in 2030.

 

Mike Gerrard, Chair of INPP, commented:
"Reaching financial close on Sizewell C represents a major milestone for INPP.
The transaction combines attractive, regulated and inflation-linked returns
with robust protections that cap investor downside, and it further strengthens
our ability to support shareholders with long-term dividend growth."

Jamie Hossain, Senior Investment Director at Amber Infrastructure and
Portfolio Lead of INPP, added:

"Sizewell C is the culmination of several years of work with government and
regulators to adapt the RAB model to the nuclear sector. It is a landmark
transaction that balances value for money for consumers with a compelling
investment proposition, and we are delighted that INPP will play a part in
delivering one of the UK's most critical infrastructure projects."

 

ENDS

NOTES TO EDITORS

For further information:

Erica
Sibree
                                +44 (0) 7557
676 499

Amber Fund Management
Limited

 

Hugh Jonathan
                        +44 (0)20 7260 1263

Deutsche Numis

 

Mitch Barltrop/ Maxime Lopes
          +44 (0) 7703 330 199 / (0) 7890 896 777

FTI Consulting

 

About International Public Partnerships ('INPP'):

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 130 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, New Zealand 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 in
this capacity is responsible for investment origination, asset management and
fund management of the Company.

Amber is part of Boyd Watterson Global Asset Management Group LLC, a global
diversified infrastructure, real estate and fixed income business with over
$36 billion in assets under management and over 300 employees with offices in
eight US cities and presence in twelve countries (as at 31 December
2024).Visit the INPP website at www.internationalpublicpartnerships.com
(http://www.internationalpublicpartnerships.com/)  for more information.

 1  (#_ftnref1) Read more on INPP website:
https://www.internationalpublicpartnerships.com/investments/case-studies/regulated-asset-base-model

 2  (#_ftnref2) See INPP investor presentation on announcement of the Sizewell
C transaction in July 2025
https://www.internationalpublicpartnerships.com/media/zkvd0hln/20250722_inpp_troy-presentation_vf.pdf

 3  (#_ftnref3)   All portfolio information as at 31 December 2030 that
follows reflects the INPP portfolio as at 30 June 2025, projected forward to
31 December 2030 once the investment in SZC is fully deployed. Assuming all
other factors remain constant, the update from the previously reported
position is the addition of INPP's investment in SZC. The Company remains
committed to its previously announced share buyback programme. This, along
with near-term capital deployment such as SZC, is expected to be supported by
selective asset realisations.

 4  (#_ftnref4) INPP's portfolio weighted average discount rate as at 30 June
2025.

 5  (#_ftnref5) Calculated by running a 'plus 1.0%' inflation sensitivity for
each investment and solving each investment's discount rate to return the
original valuation. The inflation-linked return is the increase in the
weighted average discount rate.

 6  (#_ftnref6) Following this investment, the Company expects to support its
progressive dividend growth policy through portfolio cash flows and continue
delivering its share buyback programme, subject to market conditions and
capital allocation priorities. The projected cash receipts from the Company's
portfolio are such that even if no further investments are made, the Company
currently expects to be able to continue to meet its existing progressive
dividend policy for at least the next 20 years (increasing to at least 25
years following the investment in SZC, all else being equal). This includes
the 2025 and 2026 dividend targets and 2.5% annual dividend growth thereafter.

(#_ftnref7) 7 The investment into Sizewell C is expected to increase the
weighted average life of the portfolio by four years following full capital
deployment in 2030. Without this investment, the weighted average life of the
portfolio would be expected to decrease from 38 to 34 years as at 31 December
2030.

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