Australia’s Macquarie Group has secured the acquisition of the UK’s Green Investment Bank in a £2.3bn deal.
GIB will manage or supervise over £4bn of green infrastructure assets and projects under the deal once it formally closes.
Macquarie has committed to a £3bn target for new green infrastructure investment over the next three years as part of the acquisition with GIB to be the primary vehicle for renewables spending in the UK and Europe.
GIB will also establish three new investment arms in offshore wind, other green infrastructure and a low carbon lending platform.
A number of GIB assets will be moved into the new offshore wind company which will be managed by it under via a 25% stake. Investors here will include Macquarie European Infrastructure Fund 5 and the Universities Superannuation Scheme (USS).
USS and GCP Infrastructure Investments will invest in the low carbon lending platform.
Macquarie has set out a series of commitments for the future of GIB under its ownership, including maintaining the bank’s green purpose and green objectives in line with the ‘special share’ arrangements held by five independent trustees.
The bank’s platform and brand will be retained and its Edinburgh office will be home to a new revenue generating project delivery business providing services to the green energy portfolios of GIB and Macquarie in the UK.
Macquarie is also committed to supporting the UK Climate Investments Initiative, a £200m pilot joint venture between GIB and the government to invest in renewable energy and energy efficiency projects in developing countries.
The UK government will continue to hold a £130m portfolio of a small number of GIB’s existing green infrastructure investments.
BEIS said the transaction value ensures that on completion, all taxpayer funding invested in GIB since its creation, including set-up costs, has been returned with a profit.
“This deal gives us the best of both worlds,” said climate minister Nick Hurd.
“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.”
Image: GIB is an investor in the under-construction Rampion wind farm (Eon)
