4th Nov 2014 12:13
LONDON (Alliance News) - International Public Partnerships Ltd Tuesday said that Transmission Capital Partners, the consortium it is a part of with Amber Infrastructure and Transmission Investment, has achieved financial close in the Lincs offshore transmission project.
The deal means the FTSE 250-listed investment company has completed its investment in the offshore transmission project.
In a statement, International PPLC said the investment represents the fifth offshore transmission project that Transmission Capital Partners has closed under Ofgem's tenders for the long-term licence and operation of offshore transmission assets in the UK and is the company's single largest investment to date.
International PPL has invested about GBP171 million, funded through cash and debt, to acquire the equity and junior debt of the project, with the senior debt being provided by the European Investment Bank.
The company said its projected returns from its investment in the Lincs project will be in line with the returns it is receiving from its existing portfolio of transmission assets and will be linked to Retail Prices Index inflation.
"This will enhance the proportion of revenues from investments in the company's portfolio that are inflation linked to 84%. The investment is expected to provide immediate yield to the company," International PPL said in a statement.
The investment represents about 17% of the company's portfolio and will see its overall investment in the offshore transmission sector rise to about 33% oft he portfolio based on net asset value, which refers to assets less liabilities, at the end of June.
As a result of this investment being partly funded from International PPL's GBP175 million revolving debt facility, the company will have drawn debt of about GBP110 million.
The Transmission Capital Partners consortium has also been shortlisted by Ofgem for a further two projects: Westermost Rough and Humber Gateway, both located in the North Sea off the coast of Yorkshire with a combined investment value of GBP400 million. Preferred bidder status is expected to be announced during 2015, according to the company.
International PPL also said a "wide range of attractive opportunities" in each of the UK, European, Australasian and North American markets is being reviewed.
International PPL shares were down 0.3% at 137.50 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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