The UK Green Investment Bank (GIB) will create a ‘special share’ in the company as part of its process to introduce private capital to the organisation.
The special share will be held by a separate company independent of both GIB and the UK government, subject to the successful conclusion of a transaction.
GIB would not be able to make changes to its green mission, as set out in the Objects of its articles of association, unless this special shareholder gives its consent.
The green mission requires each individual GIB investment to contribute to meeting one of five ‘green purposes’ and a wider portfolio that makes a positive overall reduction in greenhouse gas emissions.
The announcement follows on from the government’s 25 June 2015 announcement to bring private capital into GIB by selling a majority of its shares in the organisation and moving GIB into the private sector.
UK Business Secretary Sajid Javid said: “Moving the Green Investment Bank into private ownership makes sense.
“If you want it to have access to more capital, to make bigger investments and have a bigger impact in green sectors it is the best course of action.
“To ensure the bank’s green credentials are maintained it plans to put a special share structure in place that protects its green mission and keeps it focused on what it does best.”
Image: GIB’s moves to the private sector aim to attract more capital for larger investments (sxc)
