TIDMBBGI
RNS Number : 5116L
BBGI Global Infrastructure S.A.
16 May 2022
16 May 2022
BBGI Global Infrastructure S.A.
("BBGI" or the "Company")
Acquisition of an interest in the A7 German motorway
First road project in Germany for the Company, in addition to
its existing six projects in the country
BBGI Global Infrastructure S.A. (LSE ticker: BBGI), the global
infrastructure investment company, is pleased to announce that it
has entered into an agreement to acquire a 49% equity interest in
Via Solutions Nord GmbH & Co. KG, a limited partnership
incorporated in Germany, being the project company for the A7
motorway public-private partnership ("PPP") between Bordesholm and
Hamburg in Germany.
The asset is classified as availability-based under the
investment policy of the Company and aligns with BBGI's ESG
principles. All of BBGI's investments are availability-based and
supported by secure public sector-backed contracted revenues, with
inflation-protection characteristics, that are paid so long as the
assets are available for use. The investment offers an inflation
linkage in line with the BBGI portfolio.
The project includes expansions and upgrades to certain critical
sections of the A7 motorway and consists of the design,
construction, financing, operation, maintenance and rehabilitation
of 65 km widening from four to six lanes of a section of the A7
motorway between Bordesholm and Hamburg. The project includes 11
interchanges, six parking facilities, four rest areas, 79 civil
engineering structures, c. 100,000 m2 noise barriers and a c.
550-metre noise enclosure tunnel. Availability payments are
received from the Federal Republic of Germany, represented by DEGES
(Deutsche Einheit Fernstraßenplanungs- und -bau GmbH), rated AAA /
Aaa by S&P and Moody's, respectively. Construction completion
was achieved in December 2019 and the concession runs until
2044.
The purchase price is confidential, but the investment is
expected to rank in the Company's top six to ten investments.
Consideration for the acquisition of the 49% interest is being
funded by the Company drawing upon its GBP230 million corporate
revolving credit facility and existing cash resources.
The interest is being acquired from entities owned by Hochtief
Solutions AG. Completion of the acquisition is subject to certain
conditions, which are customary for this type of transaction,
including consent from the public sector client.
The project's increased efficiency of the A7 will help to
minimise any increase in exhaust emissions from the higher traffic
load by reducing congestion and traffic jams and is expected to
achieve a consistent traffic flow and uniform driving speeds. A
fauna, flora and habitats compatibility study was undertaken and
concluded that the project will not have significant negative
effect on protected sites or species. The project also contributes
to the trans-European networks' objectives to improve cross-border
connections.
Frank Schramm, Co-CEO of BBGI, said:
"Our 56(th) availability-based infrastructure investment is our
first road project in Germany and a great addition to our existing
six projects in the country, further strengthening our Continental
Europe exposure ."
Duncan Ball Co-CEO of BBGI, said
"We are delighted to announce the acquisition of this
high-quality, availability-based infrastructure investment. Our
strategy is to remain disciplined and selective in our approach to
acquisition opportunities by only investing in availability-based
assets that also align with our ESG principles, and not in higher
risk infrastructure asset classes."
FOR FURTHER INFORMATION, PLEASE CONTACT:
BBGI Management Team +352 263 479-1
Duncan Ball
-----------------------------
Frank Schramm
-----------------------------
Maitland/AMO (Communications
adviser) +44(0) 20 7379 5151
-----------------------------
James Benjamin / Alistair de BBGI-maitland@maitland.co.uk
Kare-silver
-----------------------------
NOTES
BBGI Global Infrastructure (BBGI) is a responsible
infrastructure investment company and a constituent of the FTSE 250
that invests in and actively manages for the long-term a globally
diversified, low-risk portfolio of essential social infrastructure
investments.
These are the important infrastructure assets on which citizens
rely every day, such as education, healthcare, fire and police
stations, affordable housing, modern correctional facilities, and
transport. They are the building blocks of the local economy and as
a long-term custodian, BBGI partners with the public sector,
underpinned by government or government-backed counterparties, to
help deliver and manage these assets.
BBGI is committed to delivering stable and predictable cash
flows with progressive long-term dividend growth and attractive,
sustainable, returns for shareholders. BBGI has a proactive
approach to preserving and enhancing the value of its investments,
and to delivering well maintained social infrastructure for
communities and end users, whilst serving society by supporting
local communities. Environmental, Social and Governance ('ESG')
considerations are embedded in BBGI's business strategy, operations
and investment processes.
All of BBGI's investments are availability-based and supported
by secure public sector-backed contracted revenues, with
inflation-protection characteristics, that are paid so long as the
assets are available for use. BBGI's investment portfolio is over
99% operational with all its investments located across highly
rated investment grade countries with stable, well developed
operating environments.
BBGI's in-house management team is incentivised by shareholder
returns and consistently maintains low comparative ongoing charges
to shareholders.
Further information about BBGI is available on its website at
www.bb-gi.com*.
The Company's LEI: 529900CV0RWCOP5YHK95
Any reference to the Company or BBGI refers also to its
subsidiaries (where applicable).
* Neither the Company's website nor the content of any website
accessible from hyperlinks on its website (or any other website) is
(or is deemed to be) incorporated into, or forms (or is deemed to
form) part of this announcement.
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