International Public Partnerships Limited (INPP) has announced that it has successfully revised the terms of its corporate debt facility, increasing the facility from £300 million (US$373 million) to £400 million (US$498 million).

The existing facility, due to expire in May 2018, has been extended and will now become due for renewal in November 2019. The increase to £400 million (US$498 million) will support the strong pipeline of new potential investment opportunities into regulated and other public infrastructure over the next 12 months. As such the facility is intended to provide the company with the flexibility to invest in appropriate opportunities rather than serving as long-term, structural leverage.

The facility has been renewed on the same terms as the existing facility. The margin on cash drawn amounts of the facility will continue to be 175 bps over Libor.  In addition, the availability of the facility to provide letters of credit has been increased from £300 million (US$373 million) to £400 million (US$498 million), providing the company with flexibility, particularly around investments made during the construction phase of projects. The commitment fee on the facility remains at 70 bps. 

As part of the increase to the existing facility, the banking group is to be expanded to include Barclays and an additional participation from Sumitomo Mitsui Banking Corporation (SMBC). These two lenders will rank alongside the existing banking group of Royal Bank of Scotland and National Australia Bank.

The company has utilized £138.4 million (US$172 million) of the credit available under its revolving credit facility, (taking into account its future investment obligations into new projects, including its investment commitments to the Thames Tideway Tunnel project and a drawn cash balance of £13.5 million (US$17 million)). The company has fully deployed the capital previously raised in July 2016.