GIB to boost support for low carbon projects following sale to Macquarie
Sale of Green Investment Bank confirmed, with £3Bn of new investment into low carbon projects under Macquarie’s ownership.
Climate Change and Industry Minister Nick Hurd has confirmed the sale of the Green Investment Bank (GIB), to Macquarie Group Limited (Macquarie).
The GIB agreed to look into investing £3Bn over the next three years following the sale, into the green economy.
The deal with reached following a competitive process, and will meet the objectives outlined by the government last year during the sales process. The sale will free GIB from constraints of public sector ownership, and enable GIB to grow its support for green projects.
Nick Hurd Climate Change and Industry Minister said: “The Green Investment Bank has been very successful in attracting private capital to the UK’s green economy. It now makes sense to move it into the private sector where it will be free from the constraints of public sector ownership, allowing it to build further on its success.
“This deal gives us the best of both worlds. We have secured fair value for the UK taxpayer. GIB has a well-funded new owner that is committed to the Bank’s green mission, with a track record of success in green investment and an ambition to grow the business. The UK will benefit from increased investment in our green infrastructure as we make the transition to a green economy.”
Lord Smith of Kelvin, chair of GIB’s independent board said: “There is a compelling logic in the world’s first green bank joining forces with the world’s largest infrastructure investor. When we embarked on this process, we were determined to find a new owner who would build on GIB’s successful history – an owner who would have access to deep pools of capital, a commitment to expand GIB’s activities, and a respect for the unique role GIB has played in the market. Macquarie will bring all of this to GIB, along with its own impressive track record of green investments. Its vision for the future growth of GIB demonstrates a redoubling of its commitment to a low carbon economy.”
The GIB supports nearly 100 green infrastructure projects since its launch in 2012, with every £1 invested, attracting another £3 of third party capital.
GIB will become the primary vehicle for Macquarie’s renewable energy investment in the UK and Europe, with a commitment to target £3Bn of new green infrastructure investment over the next three years, exceeding GIB’s track record of committing £3.4Bn of investment over the 4 and a half years since it was established.
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