The Strathclyde Pension Fund is to invest £30m in UK offshore wind via a follow-on deal with the Green Investment Bank.
Members of the Glasgow municipal fund’s committee this week agreed to support the investment, which builds on an earlier commitment of £50m.
“The current pipeline of further potential acquisitions is strong; the business case for one asset in particular is highly compelling and would complete the investment phase of the fund,” said a report to the committee.
“GIB have approached investors for additional funding for the purchase of the new asset or others in the pipeline.
“A follow-on investment would not only provide funding for the additional purchase(s) but also provide SPF with a larger stake in the existing GIB offshore wind farm asset pool,” it added.
SPF said the fund to date has provided “strong initial cash yields for investors”. Returns between 9% and 11% are expected.
Image: GIB offshore fund investments include the 576MW Gwynt y Mor off Wales (Innogy)
Strathclyde invests £30m in offshore
Follow-on deal with UK Green Investment Bank targets returns of up to 11%
By EBS