30 July 2014

Amber Consortium Selected Bidder for funding ‘aggregator’ scheme

Amber Infrastructure (Amber) is pleased to announce that the Amber Consortium, including Lloyds Banking Group and Berwin Leighton Paisner, supported by International Public Partnerships, Aviva Investors, European Investment Bank has been awarded Selected Bidder on a funding scheme which will support the five batches of schools under the PF2 initiative being delivered through the Priority Schools Building Programme (PSBP).

The Priority School Building Programme is a centrally managed government programme set up to address the needs of the schools most in need of urgent repair. Through the programme, 261 schools will be rebuilt or have their condition needs met by the Education Funding Agency (EFA).

The first school was completed in 2014 and all remaining schools within the programme will be delivered by the end of 2017. As part of the programme, 46 schools in five batches with a value of circa £700m are being delivered via private finance funding using the PF2 structure - the government’s new approach to private finance.

The funding scheme will provide a central source of finance across the five privately financed schools batches and will create significantly more efficiencies than would be possible were each project to secure financing individually. This ‘aggregated’ model was also originally developed to address issues of availability of long-term debt, which was not readily available at the time the PSBP was procured.

The funding for the scheme is expected to be provided exclusively by the Amber Consortium: International Public Partnerships (advised and managed by Amber) will provide approximately 10% in the form of equity and mezzanine funding, with the residual senior debt financing provided equally by the European Investment Bank and clients of Aviva Investors.

Commenting on the aggregator scheme, Giles Frost of Amber, said, “We are delighted to have been appointed to the EFA’s schools funding scheme, a landmark project that paves the way for future financing models in the sector. Amber’s ability to originate innovative financial solutions for its public sector clients, combined with the experience and track record of our consortium partners is uniquely aligned with this new approach to private financing. We look forward to working with the EFA, creating real value for money and helping to raise standards of education across the UK.”

Laurence Monnier, Head of Infrastructure Debt at Aviva Investors, said, “Aviva Investors, working on behalf of its clients, is delighted to have worked with Amber to provide an innovative solution to finance this important government project. We are particularly pleased to enable the funding of the renovation of these schools, which continues our long term commitment to bring institutional investors to finance UK infrastructure.”

Jonathan Taylor, European Investment Bank Vice President, said, “Investment to upgrade schools under the Priority Schools Building Programme will both improve education and support construction activity across the country and the European Investment Bank is pleased to work with the Education Funding Agency, Amber Consortium and leading institutional investors to achieve these shared goals. Involvement with the Priority Schools Building Programme forms part of our commitment to support long-term investment in education and the knowledge-economy across the UK and Europe.”

For further information:

Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited

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

Grant Bather +44 (0)20 7809 6252
Aviva Investors Global Services Limited

Richard Willis +352 621 555758
European Investment Bank

Notes to Editors:

About Amber Infrastructure Group

Amber Infrastructure Group (Amber) is a leading international infrastructure specialist, providing asset management and investment advisory services in respect of over £4 billion of assets in the UK, Europe, Australia and North America. Amber’s core business focuses on sourcing, developing, advising on, investing in and managing infrastructure assets within the utilities, PPP, transport, renewable energy and regeneration sectors.

Amber provides investment advisory services to International Public Partnerships Limited as well as private investment funds, specialising in urban regeneration and energy efficiency. Amber is headquartered in London with offices in Munich, Sydney, Melbourne and San Francisco and employs approximately 75 people, making it one of the largest international infrastructure specialists.

About Aviva plc

  • Aviva provides 34 million customers with insurance, savings and investment products.
  • We are the UK’s largest insurer and one of Europe’s leading providers of life and general insurance.
  • We combine strong life insurance, general insurance and asset management businesses under one powerful brand.
  • We are committed to serving our customers well in order to build a stronger, sustainable business, which makes a positive contribution to society, and for which our people are proud to work.
  • Aviva Investors Global Services Limited, registered in England No. 1151805. Registered Office: No. 1 Poultry, London EC2R 8EJ. Authorised and regulated by the Financial Conduct Authority and a member of the Investment Management Association. Telephone calls may be recorded for training and monitoring purposes Contact us at Aviva Investors Global Services Limited, No. 1 Poultry, London EC2R 8EJ

About Aviva Investors

  • Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 15 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £246 billion at 30 September 2013.

About European Investment Bank

  • The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The information and opinions contained in this document are for use by the financial press and media only, and do not purport to be full or complete. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice. Past performance is not a guide to the future.

Unless stated otherwise any opinions expressed are those of Aviva Investors Global Services Limited (Aviva Investors). They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature.

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