The UK Education Funding Agency (EFA) has announced that the Amber Consortium has reached commercial close on the funding scheme to five batches of schools being delivered through the Priority Schools Building Programme (PSBP).

The commercial close follows the signing of the Funding Procurement Agreement with the EFA and is an important step towards achieving financial close on the underlying schools projects.

The Priority School Building Programme is a centrally managed government programme set up to address the needs of the schools most in need of urgent repair. Through the programme, 261 schools will be rebuilt or have their condition needs met by the Education Funding Agency (EFA), with all schools within the programme delivered by the end of 2017.

As part of the programme, 46 schools in five batches with a value of circa £700 million (US$1.11 billion) are being delivered via private finance funding using the PF2 structure - the government's new approach to private finance.

The Amber Consortium includes International Public Partnerships Limited (INPP) and Aviva Investors, with EIB also providing senior debt. INPP expects to provide up to £78 million (US$124 million) of this funding as each batch reaches financial close over the next 12 months.

Further details will be provided as each financial close date is reached.

The five batches are the following:

• Batch 1 - Priority School Building Programme (Hertfordshire, Luton and Reading)
• Batch 2 - Priority School Building Programme (North East)
• Batch 3 - Priority School Building Programme (North West)
• Batch 4 - Priority School Building Programme (Yorkshire)
• Batch 5 - Priority School Building Programme (Midlands)