International Public Partnerships Limited (LON:INPP), the listed infrastructure investment company has successfully completed a refinancing of the senior debt in the Durham Building Schools for the Future programme in conjunction with Aviva Investors.
Following completion of its construction in 2012, Durham BSF accommodates over 2,000 pupils across three schools in the area.
By maintaining highly competitive terms from commercial lenders, the refinancing has allowed Durham BSF and the Company to take advantage of the improved lending margins in the current debt market for high-quality projects such as Durham BSF, delivering a significant financial benefit to Durham County Council (the ‘Council’). The gain on the refinancing was shared in accordance with the Company’s contract with the Council enabling the Council to achieve significant value for money from the project.
The refinancing took place in conjunction with successfully transitioning the schools’ facilities management contractors to new providers, following the collapse of Carillion plc in January 2018. In doing so, INPP’s Investment Adviser maintained full asset availability at Durham BSF so that the Council and the schools’ staff and students suffered no disruption.
Rupert Dorey, Chairman of International Public Partnerships, said: “As a responsible, long-term investor in UK public infrastructure, we actively seek opportunities under our contracts to share savings with our public-sector clients that become available from improved financing terms. It is this alignment of interests and our accountability to a project’s end-user that helps us maintain our strong relationships with the procuring local authorities and deliver value for money throughout an asset’s life.”
The refinancing is one of a series across the Company’s portfolio that is being conducted to deliver savings to the projects and the Local Authorities which commission the public services each project provides. To date, a total of five projects have been refinanced in conjunction with Aviva Investors and Amber Infrastructure, with further refinancings planned.