Green Bank sale confirmed

20 April 2017 The £2.3bn sale of the Green Investment Bank (GIB) has been confirmed by the government.

Australian investor Macquarie has been confirmed as the winning bidder for the bank, which was created in 2012 to increase investment into more risky eco-friendly projects across the UK.

Under the deal, Macquarie Group, Macquarie European Infrastructure Fund 5 and Universities Superannuation Scheme will acquire the GIB, with the government retaining a ‘special share’ interest in the bank to ensure it has a continued focus on supporting investments into green infrastructure projects.

Once the sale is completed, the GIB will establish three new investment vehicles: an offshore wind investment vehicle, a low carbon lending platform and a green infrastructure investment platform.

The government will continue to hold a £130m portfolio of a small number of GIB’s existing investments, which will continue to be managed by GIB until they can be sold on “in a way which returns best value for taxpayers’ money”, said business minister Nick Hurd.

“By combining the Green Investment Bank with the largest infrastructure investor in the world, we will create a market leading platform dedicated to investment in the low carbon economy in the UK and beyond,” said Daniel Wong, head of Macquarie Capital Europe.

He added that the firm is “fully committed to maintaining [the bank’s] green purpose”.

The sale of the bank has been beset by problems, with opposition from MPs and others, as well as an ultimately unsuccessful attempt by competing bidder Sustainable Development Capital to have the decision judicially reviewed.

 

This page was last updated on:
19 February 2018.

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