The PFI Infrastructure Company plc (PFI.L)

Investment requirements

Subject to the Board of PFI Co, the normal criteria for investment of equity in PFI/PPP special purpose companies (SPCs) are as follows.

Maximum investment: £5.0 million.

Minimum investment: £0.5 million

Shareholding: 10 - 100% of the share capital of an SPV.

Form of investment: ordinary share capital, subordinated loan stock and any other form of share capital or debt.

Scope: Investments may be made in newly formed SPCs (primary investments) or in existing SPCs (secondary investments).

Investment criteria: the principal criteria are the yield and the annual internal rate of return (IRR) projected by the financial model for the SPC, in respect of the entire investment by PFI Co in whatever debt or equity instrument and calculated on a committed basis.

Timing of investment in an SPC: upfront at financial close or spread over a drawdown period

Timing of investment returns: spread over the term of the project agreement between the SPC and the client authority, typically 25-30 years plus the build period.

Realisation: PFI Co will seek to retain the flexibility to realise its investment by onward sale before expiry of the project agreement, typically 3-7 years after an initial primary investment

Sectors: most sectors considered with the emphasis on accommodation projects such as education and healthcare, and avoiding projects with significant demand dependence.

Due diligence: accounting, technical, insurance and other due diligence for PFI Co on primary investments is normally shared with the SPC and the senior lenders.


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