BBGI SICAV S.A. (LON:BBGI), the global PPP infrastructure investment company, today announced that it has completed the acquisition of a further 33.3% equity interest in the Ohio River Bridges – East End Crossing PPP Project and now owns 66.6% of the equity in the project.
The Ohio River Bridges – East End Crossing PPP project is a large-scale availability-based infrastructure project. The fully operational project opened to the public on schedule in December 2016. The East End Crossing greatly improves connectivity, public safety and economic growth for residents, businesses and visitors in the Southern Indiana region. The centerpiece of the project is the Lewis and Clark Bridge, a twin-tower, cable-stayed bridge that stretches 760 m across the Ohio River. The asset is classified as availability-based under the investment policy of the Company and the concession runs until 2051. Availability payments are received from the Indiana Finance Authority (S&P: AA+ Moody’s: Aa1).
The consideration payable by the Company for the additional interests is in-line with the Company’s current valuation and will be funded from the Company’s existing cash resources and drawings under its credit facility.
Duncan Ball, BBGI SICAV S.A. Co-CEO commented:
“Ohio River Bridges is now one of the largest investments in our portfolio and we are delighted to have been able to increase our holding in this high quality, stable, operational US PPP project. Having been involved in the project from construction and then into operation, we know the asset well and have been very pleased with the performance to-date. Given our existing involvement with this project, no additional management resources will be needed to oversee the incremental investment, helping to contribute to BBGI’s low on-going charge”
Frank Schramm, BBGI SICAV S.A. Co-CEO added:
“The transaction increases our exposure to the USA and has a long remaining concession life of 32 years. All of the investments in our portfolio remain low risk, availability-based projects and this transaction follows our purist approach to investing in availability-based projects.”