BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - International Public Partnerships Ltd. (INPP.L), an infrastructure investment company, announced Thursday that it has made an additional investment of 10 million euros and a contingent commitment of a further 14 million euros to the 100% indirectly owned special purpose company that owns the Northern Diabolo Rail Link.
Diabolo is a rail infrastructure investment which integrates Brussels airport with Belgium's national rail network.
The company said it has allowed up to 24 million euros in total to be made available should the Project require it. To the extent that the full 24 million euros is not required, unutilised commitments will be canceled.
INPP said its additional investment would support the Project's liquidity position, ensure its debt covenants will continue to be met, and ultimately protect the value of the company's investment.
Covid-19 has resulted in the number of passengers using the Project being significantly lower over the course of 2020 compared to previous years, and the reinstatement of a national lockdown in Belgium at the end of October 2020 has further impacted passenger numbers.
The company noted that the Project's operational performance remains excellent. However, without remedial action by the company, the continued lower than projected passenger numbers would be anticipated to result in a liquidity shortfall and a breach of certain formula-based debt covenants in early 2021.
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