Acquisition of interest in German motorway

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 £230 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	[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.

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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