International Public Partnerships says NAV up in Q3

International Public Partnerships, the infrastructure investment company, says its net asset value grew during the third quarter of 2011.

The firm, which is listed as INPP on the FTSE 250, specialises in putting money into public private partnerships ("PPPs") and private finance initiative (PFIs). Generally it does not disclose its net asset value in quarterly updates but we know that as of the end of June the NAV was £550m.

INP says currency movements since that time will have had a negative effect on asset values but so called "risk free rates" - still a widely accepted synonym for sovereign base rates - have gone down which is actually good for INPP.

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Risk free rates are tricky to understand but because INPP gets much of its revenue from governments which are seen to be paying their debts (particularly the UK government) the value of those investments is going up. Overall this "risk free" effect is more powerful than currency movements so INPP believes its net asset value has risen during the quarter.

In addition, it has made £77m in new investments since the beginning of July, including buying 100% of the interests in the "Building Schools for the Future Investments" programme for £58.4 million. This provides INPP with minority interests in 48 projects relating to over 100 individual schools.

The company paid an interim distribution of 2.925p per share in October, slightly up on the equivalent period of 2010, with a target of 5.85p per share for the full 2012 distribution.

At 9.54am shares in INPP were flat on the open at 116.76p. Over the last 12 months the share price has risen 2%.

BS