Islandmagee Project - Update on Project Funding

RNS Number : 6459X

Infrastrata PLC

20 December 2019

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

20 December 2019

InfraStrata plc

("InfraStrata" or the "Company")

Islandmagee Gas Storage Project - Update on Project Funding

InfraStrata plc (AIM: INFA), the UK quoted company focused on strategic infrastructure projects, provides an update on funding options available to the Company in respect of its Islandmagee Gas Storage Project (the "Project").  As a result of the outcome of the UK General Election last week, the Board has taken a strategic decision not to enter into a binding agreement with its preferred equity partner, with whom the Company has been in intensive negotiations to fund the Project and reach Final Investment Decision ("FID").

The UK is expected to exit the EU and numerous pledges have been made in relation to strategic infrastructure project development funding.  The Board believes that there is potential to capitalise on one or more of these funding opportunities that are expected to arise over the course of the next few months.  If the Board is successful it may result in the Company retaining a significantly higher equity portion in the flagship Project going forward. The Board's preferred equity partner is understanding of the position taken, given that a government supported funding programme will likely de-risk project economics significantly for all shareholders, both at the Company and project levels.

In the long run, the Board expects this is likely to result in a substantial increase in shareholder value. The Board expects to be in a position to have fully evaluated the available options within the next three to six months.  If at any time during this process the Board considers that the Company's interests are likely to be adversely affected, it shall seek to revert to one of the current potential equity partners immediately with a view to formally concluding financing arrangements for the Project.

John Wood, Interim Chairman and CEO of InfraStrata, said: 

"Whilst we are not taking the Final Investment Decision for the Islandmagee project as envisaged at this point in time, we firmly believe that given our forecasted project lifecycle revenues in excess of £1.2 billion, securing a financial structure that facilitates the Company to retain a majority equity holding in the project is the most appropriate route to pursue. Whilst government policy in relation to new infrastructure funding is still in its conceptual stage, we firmly believe that it is crucial for us to investigate this funding mechanism and determine its commercial and financial viability."

**ENDS**

For further information, please visit www.infrastrataplc.com or contact:

InfraStrata plc John Wood, Chief Executive & Interim Chairman	c/o Newgate Communications [phone]
Allenby Capital Limited (AIM Nominated Adviser & Joint Broker) Jeremy Porter / Liz Kirchner	[phone]
Arden Partners plc (Joint Broker) Paul Shackleton / Dan Gee-Summons (Corporate Finance) Simon Johnson (Corporate Broking)	[phone]
Newgate Communications (PR) Elisabeth Cowell/ Ian Silvera/Jamie Williams	[phone]

Notes to editors:

InfraStrata is a London Stock Exchange-listed group focused on strategic infrastructure projects.

The rapid development of the 100% owned Islandmagee Gas Storage Project is a core workstream for InfraStrata. It is expected to provide 25% of the UK's natural gas storage capacity and to benefit the Northern Ireland economy as a whole when complete. Given that the Committee on Climate Change has advised that the UK will still need a significant quantity of natural gas by 2050 - about 70% of today's consumption - the market opportunity for this project is compelling. 

Mindful of the fact that safe, secure and flexible sources of energy are needed for a sustainable future, InfraStrata is focused on providing investors with exposure to a growing portfolio of UK, European and international energy infrastructure projects. With this in mind, the Company's highly experienced team is focused on acquiring, developing 1and commercialising innovative infrastructure projects around the world. 

 

END

 

 

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