Infrastructure company, International Public Partnerships (INPP), the FTSE 250 listed infrastructure investment company, has released an update:
Operational performance of assets continuing as expected
- The company confirms that the operational performance of its assets continues as expected;
- Covid-19 has to date had no impact on the company’s cashflow from its investments; and
- The company’s balance sheet remains robust with a £400m revolving debt facility (maturing in July 2021) of which only circa £9.5m is cash drawn or otherwise committed. The company also has circa £70m of cash available in addition to the cash held within the underlying investments.
“Whilst the full consequences of the pandemic and its effects cannot yet be known, the company believes that its business model and diversified portfolio continues to offer a significant degree of protection to shareholders and is reassured by the operational performance of its assets to date.
INPP’s manager, Amber Infrastructure Group and its asset management team are fully resourced and are actively managing portfolio performance. During this time of uncertainty the team has been working to continue to provide clients with the support they need whilst ensuring the health and safety of staff.
This work has focused on continuity of service delivery, availability of facilities and assurance of cashflows (receipts and payments). Bespoke Covid-19 risk management tools have been created to assist the asset management team implement the necessary interventions to support clients and protect value as the situation unfolds. Where the company or its asset management team do not have direct management control of the underlying assets (typically where the company has a minority shareholding) similar work has been requested of the relevant management teams. This review is being carried out by asset type across each jurisdiction both from an operational and contractual documentation perspective.”
Not expecting material impact from school closures for now
“Schools make up a significant part of the company’s portfolio. We note the closure of schools in the UK and Germany (and likely closures in Australia), and have engaged positively with our public sector partners over this. We currently expect that the company will be in a no worse position as a result of these closures.
The company notes that there are a range of contingent risks stemming from Covid-19. These include, but may not be limited to, staff shortages and supply chain breakdowns. The company will continue to monitor and where possible take action to avoid or mitigate any such impacts on its portfolio. The Company notes that the overwhelming majority of its revenues come from availability-based payments or regulated cashflows that generally provide a range of protections against adverse scenarios. The Company believes that those assets which are dependent for their revenues on availability are currently fully available.
As noted above, the company’s balance sheet is well positioned. In addition, debt at the level of the company’s underlying assets is bespoke to each asset but is non-recourse to the company and typically either fixed-rate debt which fully amortises over the asset life without refinancing risk, or where refinancings are required, there are regulatory or other mechanisms designed to compensate for changes in the market cost of debt.”
About INPP:
INPP is a listed infrastructure investment company that invests in global public infrastructure projects and businesses, which meets societal and environmental needs, both now, and into the future.
INPP is a long-term investor in 130 infrastructure projects and businesses. The portfolio consists of utility and transmission, transport, education, health, justice and digital infrastructure projects and businesses, in the UK, Europe, Australia and North America. INPP seeks to provide its shareholders with both a long-term yield and capital growth.
INPP: Update from International Public Partnerships