Acquisition - Canada clean energy infrastructure

RNS Number : 8011A

BBGI Global Infrastructure S.A.

07 February 2022

 

7 February 2022

BBGI Global Infrastructure S.A.

("BBGI" or the "Company")

Completion of c. GBP 24 million investment in clean energy infrastructure

in British Columbia, Canada  

BBGI Global Infrastructure S.A. (LSE ticker: BBGI), the global infrastructure investment company is pleased to announce it has completed an investment in InPower BC General Partnership, the entity responsible for delivering the John Hart Generating Station Replacement Project ("John Hart Generating Station), an investment made through the existing strategic partnership between the Company and SNC-Lavalin Group Inc. (TSX ticker: SNC) . 

The public-private partnership project consisted of the design, construction, financing, maintenance and rehabilitation of a new three-turbine, 132-MW hydroelectric power generation station on the Campbell River, British Columbia, including a 3 generating unit underground powerhouse, 2.1 kilometers of water passage tunnels and a water bypass system to protect downstream fish habitat. The new infrastructure replaces the outdated aboveground facilities which were built in 1947 with a more reliable, seismically robust and environmentally friendly facility. The project is Canada's first public-private partnership project in the hydropower sector.

Service commencement was achieved in 2019 and the concession runs until 2033. The asset is classified as availability-based under the investment policy of the Company. The investment is not subject to demand or power price risk.  Availability payments are received from the British Columbia Hydro & Power Authority (rated AA / Aaa by DBRS Morningstar and Moody's respectively) a crown corporation wholly owned by the Government of British Columbia.

John Hart Generating Station generates clean and reliable energy for over 80,000 homes. The station is located on the Campbell River on Vancouver Island. Water intake comes from the John Hart Reservoir, directed to an underground powerhouse through tunnels and three turbines. The water is subsequently released into the Campbell River.

The John Hart Generating Station project is recognised throughout the hydro industry as a case study for technical and innovative solutions, including winning two awards: The Tunnel Association Canada project excellence and the Canadian Hydropower Association outstanding project of the year award. Other past awards include the Canadian Council for Public-Private Partnerships National Gold Award for Project Financing, P3 Bulletin "Best Water/Energy Project" and the "Projects Grand Prix".

BBGI's investment is approximately CAD 41 million and is being funded from the Company's existing cash resources and drawing upon the Company's GBP 230 million corporate revolving credit facility.

Following this acquisition, BBGI now owns a globally diversified portfolio of 55 infrastructure investments in the schools, healthcare, blue light (i.e. fire and police stations), affordable housing, justice facilities and transport sectors, which are geographically located in Australia, Canada, Continental Europe, the UK and the US.

The Company seeks to limit and reduce investment risk where possible, with the current portfolio benefitting from 100% availability-based assets of which over 99% are operational. The Company also maintains a diversified supply chain in regard to facilities management and operational and maintenance ("O&M") contractors.

Commenting, Co-CEOs Duncan Ball and Frank Schramm said:

"We are delighted to complete this high-quality availability-based infrastructure investment with strong ESG credentials. 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	[phone]
Duncan Ball
Frank Schramm
Maitland/AMO (Communications adviser)	[phone]
James Benjamin / Alistair de Kare-silver	[e-mail]

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.

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.

All of BBGI's investments are availability-based and supported by secure public sector-backed contracted revenues, with inflation-protection characteristics, that is 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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