Completion of investment in PPP projects in Canada

RNS Number : 1645S

BBGI SICAV S.A.

29 September 2017

 

29 September 2017

BBGI SICAV S.A.

Completion of investment in four PPP projects in Canada

BBGI SICAV S.A. (LSE ticker: BBGI), the international PPP infrastructure investment company, is pleased to announce that it has now completed its investment in four of the operational PPP projects  in Canada, as previously announced on 30 June 2017.  All of these assets, as described below, were developed by SNC-Lavalin Group Inc. (TSX ticker: SNC) and are classified as availability-based under the investment policy of the Company:

The William R. Bennett Bridge is a 2 km corridor that straddles Okanagan Lake to connect two communities, Kelowna and West Kelowna, in the interior of British Columbia. The project became operational in 2008 and the concession runs until 2035. Availability payments are received from the Province of BC (AAA rated by S&P). BBGI's interest in the project is 80% of the project equity.

Canada Line is a 19.5 km automated rail-based rapid transit service connecting downtown Vancouver with Richmond and the Vancouver International Airport. The project became operational in 2009 and the concession runs until 2040. Availability payments are received from Translink (Aa2 rated by Moody's). BBGI's interest in the project is 26.6% of the project equity.

Southeast Stoney Trail is a 25 km highway that is part of the Calgary Ring Road network. The project became operational in 2013 and the concession runs until 2043. Availability payments are received from the Province of Alberta (A+ rated by S&P). BBGI's interest in the project is 40% of the project equity.

Restigouche Hospital Centre is a 33,500 m² hospital with 140 beds located in Campbellton, New Brunswick. The project became operational in 2013 and the concession runs until 2044. Availability payments are received from the Province of New Brunswick (A+ rated by S&P). BBGI's interest in the project is 80% of the project equity.

The transfer of a fifth asset, the McGill University Health Centre, Glen site (Montreal, QC), is currently planned to take place by the end of 2017, subject to the satisfaction of certain closing conditions.

The cash consideration for the four project interests acquired has been funded from the Company's existing cash resources and drawings under its extended credit facility. The total cash consideration for all five project interests is expected to amount to approximately CA$189 million.

Following the acquisition of the four additional project interests, BBGI owns a diversified global portfolio of 43 infrastructure assets spread across six AAA/AA-rated countries. All these projects are availability-based PPP assets and are supported by contracted, public sector-backed revenue streams, with inflation-protection characteristics. In addition, the Company has the benefit of a pipeline agreement with SNC-Lavalin which should provide access to a robust pipeline of availability-based PPP assets in Canada which are currently under construction.

Further information about BBGI is available on its website at www.bb-gi.com. 

Any reference to the Company or BBGI refers also to its subsidiaries (where applicable).

For further information, please contact:

BBGI Management Team       [phone]

Duncan Ball      

Frank Schramm

 

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