London-listed fund International Public Partnerships has launched a new share issue as it eyes raising an additional £250 million ($313.4 million; €294.6 million).
In the fund’s first open offer since October 2015, INPP said an increase in demand could push the final figure to £330 million, with the shares priced at 150 pence per share, a slight discount on its 158.70 pence Monday closing price.
The primary purpose of the placing is to repay INPP’s £400 million credit facility, which was increased from £300 million last November following additional commitments from Barclays and SMBC. Some £342 million has since been drawn down, including £274 million to fund the Amber Infrastructure-managed group’s 4.4 percent stake acquisition of the National Grid's gas distribution networks in December. INPP was part of the seven-strong Quad Gas Group that sealed the deal, valuing the assets at £13.8 billion.
INPP has also in the past 10 months invested about £54 million into the £4.2 billion Thames Tideway project. The fund expects to plough a further £100 million into the project by early 2018 as part of its 8.2 percent stake.
The remaining proceeds could be used to finance drop-down acquisitions from Amber or the use of pre-emption rights for further shares in PPP projects from its current portfolio. INPP currently invests in the UK, Europe, US and Australia, although said it is also considering expanding its footprint to New Zealand.