Gold rally "fundamentally supported for now," AHG President tells Investing.com
LONDON - International Public Partnerships Limited (INPP) has completed the financial close on its investment in the Sizewell C nuclear power station, according to a company statement released Tuesday.
The FTSE 250-listed infrastructure investment company has committed £254.3 million in equity to the project, to be invested at approximately £50 million annually over the next five years. This investment secures INPP a roughly 3% stake in the project alongside the UK Government, EDF, Centrica, La Caisse, and the Nuclear Liabilities Fund.
Sizewell C is the first UK nuclear power station to be procured under the Regulated Asset Base (RAB) model. Under this structure, INPP will receive regulated, inflation-linked returns from the beginning of its investment, independent of power generation or market price fluctuations.
During the construction and early operations phase through the late 2030s, the investment offers a fixed, regulated equity return of 10.8% in real terms, including an annual cash yield of approximately 6%. The company expects this to result in a forecast internal rate of return in the low-teens.
The nuclear facility is projected to generate about 3.2GW of low-carbon electricity, equivalent to approximately 7% of the UK's needs, for a minimum of 60 years. The project is expected to create 10,000 jobs during peak construction and over 1,000 permanent skilled positions once operational.
INPP plans to fund its annual £50 million installments through its capital recycling program. Since June 2023, the company has realized approximately £345 million from asset sales, which together with surplus operational cash, are expected to cover the investment requirements.
The company has also extended its Corporate Debt Facility by £50 million to support letters of credit for the equity commitment, while maintaining its previously announced share buyback program of up to £200 million.
Mike Gerrard, Chair of INPP, described the financial close as "a major milestone" that combines "attractive, regulated and inflation-linked returns with robust protections."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.