Amber Infrastructure (‘Amber’), is pleased to advise that Transmission Capital Partners, the consortium comprising Amber, International Public Partnerships Limited (‘INPP’) and Transmission Investment (the ‘Consortium’), has successfully reached financial close for the long-term ownership and operation of the transmission link to the 400MW Rampion offshore wind farm (the ‘OFTO’).
The project will be INPP’s ninth OFTO investment and relates to the transmission cable connection to the offshore wind farm located approximately 13km off the Sussex coast. The wind farm consists of 116 x 3.45MW wind turbine generators connected to an offshore substation platform (‘OSP’) located within the boundaries of the Rampion wind farm.
This investment will increase Amber-advised funds’ contribution to the UK's transition to a zero-carbon economy. The Rampion OFTO has the ability to transmit green electricity equivalent to around 350,000 UK homes, increasing the number of homes that could be powered via the Company's OFTO portfolio to approximately 2.1 million homes.
Rampion OFTO has no exposure to electricity production or price risk but is paid a pre-agreed, availability-based revenue stream over 20 years which is fully linked to UK inflation ('RPI').
INPP will make a c.£35 million investment for 100% of the equity and subordinated debt in TC Rampion OFTO Ltd. Project level senior debt will be provided by a group of banks to match the maturity of the OFTO revenue period such that there is no refinancing risk.
Other key investment highlights include:
- An operational and immediately yielding asset with no construction or refinancing risk;
- A 20-year availability-based revenue stream with protected downside whereby maximum potential deductions will be capped at 10% of base revenue in any year;
- The operations and maintenance of the OFTO assets will be subcontracted to a set of specialist contractors incentivised to maximise availability of the transmission assets;
- The returns generated are highly correlated to UK RPI and are not subject to any revenue or penalty exposure to windfarm performance; and
- Revenues are contracted by a subsidiary of National Grid, the National Grid Electricity System Operator (NGESO rated Baa1 Moody’s) in their statutory ring-fenced role as electricity systems operator (‘ESO’).
The investment has been funded through INPP’s £250 million revolving credit facility. INPP is also preferred bidder on East Anglia One OFTO, with a committed investment of c.£90 million.
A copy of the Ofgem press release can be found at https://www.ofgem.gov.uk/news-media/latest-news-press-releases.
For further information:
Amber Infrastructure Limited
Erica Sibree/Amy Edwards
+44 (0)20 7939 0558/0587
+44 (0)20 7260 1263
Ed Berry/Mitch Barltrop
+44 (0) 20 3727 1046/1039
Amber Infrastructure Group
Amber Infrastructure (‘Amber’) is a specialist international investment manager, focused on investment origination, asset management and fund management. Amber’s core business focuses on sourcing, developing, advising, investing in and managing infrastructure assets across the public, transport, energy, digital and demographic infrastructure sectors that support the lives of people, homes and businesses internationally.
Amber is headquartered in London with offices in Europe, North America and Australia and employs over 150 infrastructure professionals.