The Amber Consortium has reached financial close on the fourth privately financed batches of schools being delivered through the Priority Schools Building Programme in the UK.

Amber Consortium includes International Public Private Partnerships (INPP) and Amber with Aviva Investors and the European Investment Bank providing senior debt.

The project uses an innovative financing model based upon the establishment of a funding vehicle known as the 'Aggregator'. This was established by the company in November.

One of the key features of the Aggregator is the ability to warehouse loans and thereby aggregate total financing requirements across all five schools batches.

The fourth tranche of funding will support the development of eight secondary schools on existing and adjacent sites in the Midlands region of England and operations over a 25 year period.

The total capital expenditure on the schools in this batch is approximately £142 million, with the Aggregator providing £137 million, of which INPP will fund £9.8 million with European Investment Bank and Aviva providing the remainder.

The project sponsors who will provide the balance of the equity and subordinated debt include Carillion Private Finance Limited, Equitix Limited and IUK Investments Limited (HM Treasury), the Private Equity Unit set up to invest in Government infrastructure projects under PF2.

Construction work will be undertaken by Carillion and services and services by Carillion AMBS Limited. PSBP Midlands were supported by international infrastructure law firm, Pinsent Masons LLP, with a team lead by partners Gillian Frew and Jon Hart and senior associate Chris Owens.