Transmission Capital Partners, the consortium comprising International Public Partnerships (INPP), Amber Infrastructure and Transmission Investment, has reached financial close on the long-term ownership and operation for the next 20 years of the transmission link to the 402MW wind farm.
INPP will make a £46m investment for 100% of the equity and subordinated debt in TC Dudgeon OFTO. Approximately 85% of the Dudgeon offshore transmission assets acquisition will be funded by way of a public bond issuance which received a (P)Baa1 rating from Moody's.
The UK investor will benefit from a 20-year availability-based revenue stream with protected downside whereby maximum potential deductions will be capped at 10% of base revenue in any year.
Rupert Dorey, chairman of INPP said: "As our seventh OFTO investment, the company and its consortium has played a pivotal role in the development of offshore transmission into a low-risk, investible green technology. With the commencement of the next round of Ofgem's competitive OFTO tenders, we look forward to maintaining the balance that our stake in UK electricity transmission brings to the company's portfolio by continuing to generate durable, low-risk and inflation-linked returns for our investors. This investment is further evidence of the company's ability to continue originating an attractive pipeline of investment opportunities with PPP-style characteristics."