02 March 2011

Robin Rigg Offshore Transmission Project Reaches Financial Close

-Transmission Capital Partners Shortlisted for Three Additional Ofgem Schemes -

International Public Partnerships Limited (INPP), the listed infrastructure investment company, is pleased to announce that Transmission Capital Partners, the consortium comprising Amber Infrastructure, Transmission Capital and INPP has achieved financial close for the Robin Rigg offshore transmission project. This is the first offshore transmission project to reach financial close under Ofgem’s first round of tenders for the long-term licence and operation of offshore transmission assets in the United Kingdom.

The project relates to the transmission cable connection to the offshore wind farm at Robin Rigg, located 12km off the coast of Cumbria. The asset comprises the onshore substation and under-sea cables connecting the mainland electricity grid network to the offshore wind-farm, which has a generation capacity of approximately 180MW. The project has been operational since early 2010.

Key features of the project include:

  • 20 year concession term
  • Revenues linked to the availability of the asset, with potential deductions capped at 10% in any year, and fully linked to UK RPI
  • No demand based risk with no exposure (either revenue or penalties) to wind farm performance or credit
  • Revenues guaranteed by National Grid Electricity Transmission plc (NGET), a subsidiary of National Grid, in their statutory ring-fenced role as national electricity systems operator (NGET rated ‘A-’ S&P; ‘A’ Fitch).
  • Robust financial structure in place with conservative gearing (84%) and debt in place for the life of the concession ensuring no refinancing risk
  • No construction risk with immediate yield for INPP investors given the operational status of the project.

The consortium bid a revenue stream of £6.5million per annum (indexed to RPI) to successfully acquire the project. INPP is investing 100% of the equity and subordinated debt totalling £12.4million. Senior debt has been provided by Barclays, BNP Paribas and Lloyds.

The consortium is scheduled to reach financial close on three further offshore transmission projects by mid-2011 and remains shortlisted for a fifth project which is expected to be awarded this month under Ofgem’s first round of tenders.

The announcement follows shortly after the consortium was shortlisted for three projects under Ofgem’s second round of tenders which are due to be awarded later in the year. New opportunities with a total development value of up to £14bn are expected over the next nine years.

Giles Frost, Director of Amber, said: “We are delighted to have reached financial close for the very first offshore transmission project under Ofgem’s inaugural round of tenders. We expect renewable energy projects such as these will be a key focus of the Government going forward and these projects will be the foundation of a long-term commitment by Amber and INPP to the offshore transmission and renewable energy sectors.”

A copy of the Ofgem press release can be found at www.ofgem.gov.uk

For further information:

Bianca Francis +44 (0)20 7939 0558
Amber Fund Management Limited

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

Ed Gascoigne-Pees/Ed Berry +44 (0)20 7269 7132/7297
Financial Dynamics

Notes to Editors:

About International Public Partnerships (INPP):

International Public Partnerships Limited (INPP) is a listed infrastructure investment company which invests in global public infrastructure projects developed under the public private partnerships (PPP) and private finance initiative (PFI) procurement methods.

Listed in 2006, INPP is a long-term investor in 54 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters and transport projects in the U.K., Europe, Australia and Canada. INPP seeks to provide its shareholders with both a long-term government-backed 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 more than 50 dedicated infrastructure specialists which originate and source a strong pipeline of projects for INPP.

Visit the INPP website at www.internationalpublicpartnerships.com for more information.

About Transmission Capital:

Transmission Capital was established in 2008 to procure, construct, own and operate transmission assets, initially those in the UK being tendered through the new offshore transmission regulatory regime being overseen by Ofgem. It also provides transmission development advisory services to electricity industry stakeholders, including many offshore wind developers. The senior management team has over 70 years experience in the UK electricity supply industry, the majority of which has been focussed on the development, procurement and construction of major offshore transmission and wind projects.

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