International Public Partnerships : Full year results for the twelve months ended 31 December 2016

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL OR TO U.S. PERSONS. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN ANY JURISDICTION.

• Committed to invest more than £489 million in 18 projects in 2016
• All new investments were in core infrastructure assets and are projected to enhance overall returns for shareholders
• There is a clear pipeline of new opportunities offering accretive returns for 2017 and beyond
• Recent investments continue the high level of inflation linkage in the Company's investment returns
• Sustained dividend increases of c.2.5% over more than a decade with dividend growth to 6.65 pence per share in 2016 and the Company is on track for continued dividend growth in 2017 and 2018
• Continued and proven value creation, bringing Total Shareholder Return to 148.5%, an average of 9.4% per annum since IPO in 20061.
• Successful completion of two capital raisings in 2016, securing a total of £200 million in fresh equity to support strong future pipeline in regulated and other public infrastructure projects

• Net Asset Value ('NAV') growth of 24.3% to £1.6 billion (2015: £1.3 billion)
• NAV per share growth of 9.2% to 142.2 pence (2015: 130.2 pence)
• IFRS profit before tax increase of 119.4% to £175.3 million (2015: £79.9 million)
• Full-year dividend increase of c.2.5% to 6.65 pence per share (2015: 6.45 pence per share)
• Weighted NAV portfolio return projected annual increase of 0.78% per annum in response to a 1% per annum inflation (2015: 0.76%)
• Minimum target 2017 and 2018 full-year dividend of 6.82 and 7.00 pence per share, respectively with 1.2x cash dividend cover3.

In 2016, INPP continued to pursue its long-term strategy of value-focused portfolio development, active asset management and effective financial management in high quality, predictable, long-duration infrastructure projects. The Company deployed a record £209.9 million of investment and c.£280 million of investment commitments to seven new and eleven follow-on investments, including:

• Continued expansion of regulated asset base:
  • £275 million agreed investment in National Grid's gas distribution network;
  • £70.2 million follow-on investment in the Thames Tideway Tunnel;
  • £26.8 million investment in Westermost Rough offshore transmission project.
• Strategic use of pre-emption rights to increase minority stakes in existing assets :
  • £72.3 million investment to acquire interests in ten Building Schools for Future ("BSF") projects;
  • Acquisition of an additional 72% in the Wolverhampton BSF concession;
  • £5.1 million in the fifth and final batch of schools delivered under Priority Schools Building Aggregator Programme.
• Capitalising on unique primary access to the North American P3 market through the Investment Adviser's joint venture, with a £24.6 million investment in the US military housing sector.
• Further geographical diversification in low-risk, OECD countries with a £4.4 million commitment to invest in the 7.3km extension to the Gold Coast Light Rail PPP concession project in Queensland, Australia

Rupert Dorey, Chairman of International Public Partnerships Limited, commented:"On the Company's tenth anniversary, I am pleased to report another very successful year for our shareholders with continued dividend growth. This was also a record year for investment in which we invested or committed over £489 million into regulated and public infrastructure projects. As a result of our strong operational performance, the Company continues to deliver predictable, inflation-linked returns, helping generate a total shareholder return of 148.5% over the past decade."

"The strength of the Company and its Investment Adviser's experience and credibility has been proven in our ability to help originate multi-billion pound regulated infrastructure transactions, giving access to some of the most desirable assets in the market both under construction and in operation - including the Thames Tideway Tunnel and National Grid's gas distribution network in the U.K.

We continue to work and invest within the core infrastructure sector where returns are predictable and growing, and where we believe that risks are mitigated through long term contracts and well established regulatory regimes. We continue to benefit from a measured approach to new investments and through the ability of our Investment Adviser to generate opportunities for the Company offering enhanced capital growth and also through maximising the use of the Company's pre-emption rights over its existing portfolio. These factors make us confident in our ability to continue to procure a strong pipeline that will provide highly predictable and secure cash flows over the long term. The oversubscription of two capital raisings in 2016 also gives us confidence in the level of investor appetite for the Company's investment strategy. We look forward to maintaining a track record of stable and growing returns to our investors."

• Increased infrastructure investment continues to rank highly on all government agendas in the jurisdictions in which the Company invests. The global scale of, and demand for, private sector capital investment remains significant and is expected to be accretive to the Company's potential pipeline.
• Supported by the market-leading origination, development and asset management capability of its Investment Adviser - the Company remains well-positioned to capitalise on this demand and realise a pipeline of suitable projects that match its investment criteria of high-quality, predictable and long-duration assets.
• Maintaining focus on delivering completion of its investments including £78.2 million into the Thames Tideway Tunnel and up to £275 million in National Grid's gas distribution network.
• The Company's corporate debt facility is currently drawn or committed (through letters of credit) to £362.9 million and the Company is considering capital issuance in early Q2 2017 in the order of £250m.
• Global political uncertainty and consequential economic risk present potential market-wide challenges but the nature of the Company's investment portfolio and active approach to asset management provides a firm foundation to combat any emerging risks that may impact the investment cycle.

INPP will be holding an analyst and investor presentation and conference call at 9.30am on the day of announcement (30 March 2017).

Investors and analysts wishing to attend or join remotely are asked to RSVP to Louise Harvey at FTI Consulting on +44 (0)20 3727 1673 / louise1.harvey@fticonsulting.com. The analyst and investor presentation is not open to media.

To view 2016 Financial Report and Accounts click here.

To view 2016 Annual Result Presentation click here.

Amber Infrastructure
Erica Sibree
+44 (0)20 7939 0558

This announcement contains information that is inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014.

This announcement is an advertisement. It does not constitute a prospectus relating to the Company and does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefor.

Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These forward-looking statements speak only as at the date of this announcement. The Company, Amber and Numis Securities expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.

International Public Partnerships ('INPP') is a listed infrastructure investment company which invests in global public infrastructure projects developed under the public private partnerships ('PPP'), private finance initiative ('PFI'), regulated asset and other similar procurement methods.

Listed in 2006, INPP is a long-term investor in 126 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and utility and transmission projects in the UK, Europe, Australia and North America. INPP seeks to provide its shareholders with both a long-term yield and capital growth through investment across both construction and operational phases typically of 25-40 year concessions.

Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and has over 90 dedicated staff who manage, advise on and originate projects for INPP.

1. Since inception (November 2006). Source: Bloomberg. Share price plus dividends assumed to be reinvested
2. As at 31 December 2016 unless otherwise stated.
3. These are targets only and not profit forecasts. There can be no assurances that these targets will be met or that the Company will make any distributions at all.