International Public Partnerships Limited

Regulatory Filings • Apr 28, 2016

National Storage Mechanism | Additional information

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RNS Number : 6303W

International Public Partnership Ld

28 April 2016

28 April 2016

INPP Consortium to Invest in Gold Coast Light Rail Extension

International Public Partnerships Limited ('the Company', 'INPP'), the listed infrastructure investment company, is pleased to announce that the GoldLinQ consortium will make a further investment into a 7.3km extension to the Gold Coast Light Rail project (the 'Project') in Queensland, Australia.

The original A$1.29 billion project delivered by the Queensland Government and GoldLinQ saw the development of a 13km light rail system between Gold Coast University Hospital and Broadbeach. It has been operational since July 2014. The 7.3km extension from the Gold Coast University Hospital north to Helensvale will link the light rail system to the State's heavy rail line and incorporate three additional stations.

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 CPB Contractors (formerly Leighton Contractors 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.

The Company has committed to invest approximately A$7 million (c.£3.8 million at current exchange rates)] for a 26.7% equity stake in the extension alongside Plenary Group, Marubeni Group, Palisade, Keolis and Aveng Group. Construction is expected to reach completion at the end of 2017, with operations commencing in early 2018 in time for the opening of the Gold Coast Commonwealth Games in April. 

The Company's investment will be made towards the end of the construction period and its commitment will be secured by a letter of credit. As a result, the Company has approximately £142 million of uncommitted credit available under its £300 million revolving credit facility (after taking into account its future investment obligations into new projects including its investment commitments to the Thames Tideway Tunnel project). The return profile of this follow-on investment is expected to be consistent with the returns being generated by the Company on its investment in the initial phase of the project

For further information:

Erica Sibree                                 +44 (0)20 7939 0558

Amber Fund Management Limited 

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

Numis Securities 

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

FTI 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 80 dedicated staff who manage, advise on and originate projects for INPP.

This information is provided by RNS

The company news service from the London Stock Exchange

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