- First ever public-private partnership (PPP) investment in Irish health care
- Long-term debt funding volume of around EUR 140 million, structured by Talanx, Mitsubishi UFJ Financial Group (MUFG) and the European Investment Bank (EIB)
- Financing includes conception, construction and maintenance of the centres
- By investing in the PPP project, Talanx provides an important commitment to Ireland's health care sector
Hannover, 20 June 2016
With its financing of the public-private partnership (PPP) project "Irish Primary Care Centres", Talanx has made the next direct debt investment in the infrastructure market. The insurance group is co-investing along with MUFG and the EIB a volume of around EUR 140 million in total to fund the conception, construction and maintenance of 14 primary health care centres.
"After having successfully invested in the conception, refurbishment and maintenance of seven Irish court buildings in December 2015, we are delighted to make a contribution to Ireland's health care system with this new investment", says Dr Thomas Mann, Chief Investment Officer at Talanx Asset Management. "With this investment, we further underline our project finance expertise and lock-in returns significantly in excess of current 30-year German government bond yields." The financing has a tenor of around 27 years. However, the average duration of capital commitment in the PPP-project will be only 14 years, because the repayment already starts after the construction is completed. Start of construction will be in June 2016 and building time is expected to take 27 months.
Tendering authority is the Republic of Ireland via its Department of Health as well as the subordinate Health Service Executive, as an organisation and employer responsible for all public health services in Ireland. The project is being delivered by a consortium including Balfour Beatty Investments Limited, a British construction company with longtime experience in PPP-projects, Prime plc, a real estate company with expertise in the health care sector and HICL Infrastructure Company Limited, a listed infrastructure fund with relevant sector experience. The European Investment Bank contributes EUR 70 million to the PPP project, which makes up around 50 percent of the total debt funding. It will be the first health care project in Ireland to benefit from EIB support. Talanx and MUFG provide the remaining EUR 70 million.
The new primary care centres' aim is to relieve hospitals and make health care services easier available especially in rural areas and according to the increased demand of health care services by elderly people. Ireland's elderly population is growing at higher rates than the European average. In each of the 14 centres there will be a primary care team, including general practitioners (GP), practice nurses, physiotherapists, home help and support staff. Services will include GP services, occupational therapy, social work, dietary services, speech and language therapy, mental health services, counselling and dentistry. Besides the improving of health care services, the PPP project is going to generate jobs in the construction phase as well as in the operating phase.
About Talanx
With premium income of EUR 31.8 billion (2015) and about 22,000 employees, Talanx is one of the major European insurance groups. The Hannover-based Group is active in some 150 countries. Talanx operates as a multi-brand provider with a focus on B2B insurance. Under the HDI brand, which can look back on more than 100 years of tradition, Talanx operates both in Germany and abroad in industrial lines as well as retail business. Further Group brands include Hannover Re, one of the world's leading reinsurers, Targo Versicherungen, PB Versicherungen and Neue Leben, the latter all specialized in bancassurance, the Polish insurer Warta, and the financial services provider Ampega. The rating agency Standard & Poor's has given the Talanx Primary Group a financial strength rating of A+/stable (strong) and the Hannover Re Group one of AA-/ stable (very strong). Talanx AG is listed on the Frankfurt Stock Exchange in the MDAX as well as on the stock exchanges in Hannover and Warsaw (ISIN: DE000TLX1005, German Securities Code: TLX100, Polish Securities Code: TNX).
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Disclaimer
This news release contains forward-looking statements which are based on certain assumptions, expectations and opinions of the Talanx AG management. These statements are, therefore, subject to certain known or unknown risks and uncertainties. A variety of factors, many of which are beyond Talanx AG's control, affect Talanx AG's business activities, business strategy, results, performance and achievements. Should one or more of these factors or risks or uncertainties materialize, actual results, performance or achievements of Talanx AG may vary materially from those expressed or implied in the relevant forward-looking statement.
Talanx AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors nor does Talanx AG accept any responsibility for the actual occurrence of the forecasted developments. Talanx AG neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
