The UK government’s Green Investment Bank (GIB) has been sold to a Macquarie-led consortium for £2.3bn.
Macquarie, an Australian asset management and finance company operating in London, said it was “fully committed” to maintaining the bank’s pro-environment credentials as it grows the business.
As part of the deal, the government said “special share” arrangements had been put in place to safeguard its green ethos. The shares will be held by five independent trustees.
The government said that the bank had been a huge success since it was launched in 2012. It has supported nearly 100 green infrastructure projects in the UK to date attracting £3 for every £1 it has invested.
The GIB will now become the primary vehicle for Macquarie’s renewable energy investment in the UK and Europe. Macquarie has also commited to invest £3bn in new green infrastructure over three years, exceeding GIB’s track record of £3.4bn of investment over its four and a half year life.
The consortium buying the bank comprises Macquarie Group (Macquarie), Macquarie European Infrastructure Fund 5 (MEIF5) and Universities Superannuation Scheme (USS).
Climate change and industry minister Nick Hurd 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.”