AMP Capital has completed the refinancing for the Royal North Shore Hospital PPP Project (RNSH), significantly reducing its refinancing risk. The investment is held in AMP Capital’s Community Infrastructure Fund (CommIF).
The transaction, which is the first refinancing since the asset was recapitalized on the acquisition by CommIF in 2015, raised circa AUD930 million (US$638.83 million) with MUFG Bank, Westpac Banking Corporation, Natixis, ANZ, Norinchukin Australia and Sumitomo Mitsui Trust Bank.
As part of the transaction, nearly half of the debt is now termed out with the inclusion of fully amortizing 7-year and 17-year bank facilities, significantly reducing the refinancing risk in the project. AMP Capital’s Debt Advisory Team acted as financial advisor on the transaction.
RNSH is a public-private partnership established to leverage private sector expertise to design, build, finance and maintain one of Sydney’s principal tertiary hospitals, which delivers health services to Sydney’s lower North Shore as well as a state-wide Trauma Centre for New South Wales.
CommIF invests in high-yield, brownfield, social infrastructure PPP assets in Australia and New Zealand in sectors such as education, health, water, and recreational facilities. The fund provides investors with the opportunity for stable, long-term returns. The fund has 14 assets with an economic value of more than AUD3.7billion (US$2.54 billion) as of 30 June 2019.