International Public Partnerships to launch £100m fundraising

The London-listed public and social infrastructure investor will use the money to finance acquisitions over the next six to 12 months.

International Public Partnerships, the UK-based infrastructure investment group, will raise up to £100 million (€112 million; $164 million) by way of a firm placing, open offer and offer for subscription, according to a statement issued today.

In a statement, the London Stock Exchange-listed firm said it has received £28 million in commitments to subscribe to the firm placing from a mix of new and existing shareholders. The open offer is for £21 million (plus an excess application facility) and is designed to allow all existing shareholders to participate in the fundraising. The offer for subscription is for up to £51 million designed to enable new investors to participate.

International Public Partnerships said the proceeds will be used to finance further acquisitions and/or to pay down debt. It added that any investments from the proceeds will be made over the next six to 12 months. Further investments will have “substantially the same characteristics as existing investments”, according to the statement.

Since July 2008, International Public Partnerships has been investing from a £100 million corporate debt facility, of which £58 million has been drawn. Its existing portfolio comprises interests in 14 projects developed under the UK government’s private finance initiative scheme: 21 projects under the UK National Health Service’s Local Improvement Finance Trust programme and 14 public-private partnerships or similar projects in Australia, Belgium, Canada, France, Germany, Ireland and Italy. It also has an investment in Angel Trains, a UK rolling stock leasing company.

The firm was formed in July 2009, when it separated from fallen Australian investment bank Babcock & Brown and became an independent company. Under its previous manager, it was known as Babcock & Brown Public Partnerships.