International Public Partnerships (INPP), the London-listed infrastructure fund, has announced its intention to raise £150 million (€204 million; $232 million) through the issuance of new shares.
The proceeds will go towards paying back the company’s cash-drawn portion of its existing debt facility, of which £278 million – comprising £111 million in loans and £167 million in letter of credit – are currently being utilised. The facility, which totals £300 million, is being provided by the Royal Bank of Scotland and National Australia Bank.
INPP said the balance not used for repayment would serve to acquire further investments, with the overall sum expected to be fully deployed within six to nine months. The new shares will be issued at a price of 131.25 pence each, at a discount of 0.65 percent to the closing price as at 15 October but a premium of 3.18 per cent to the estimated net asset value per existing ordinary share as at 30 September.
INPP said it would target a minimum dividend of 6.45 pence per ordinary share for this year. All investors on the register as at 15 October will be entitled to the distribution covering the six-month period to end December, it added.
The company forms part of the consortium that last August reached financial close on the Thames Tideway Tunnel project, a £4.2 billion PPP in which it is set to invest £210 million.
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