The government has sold the Green Investment Bank to Australian investment bank Macquarie Group in a £2.3 billion deal.
The Department for Business, Energy & Industrial Strategy said the bank won the deal through a competitive process. Business minister Nick Hurd said it “makes sense” to sell the bank into the private sector “where it will be free from the constraints of public sector ownership, allowing it to build further on its success.”
According to a BEIS statement, the sale to Macquarie will return taxpayer investment in GIB and set-up costs with a “substantial profit.” BEIS said GIB will become the primary vehicle for Macquarie’s renewable energy investment in the UK and Europe, with a commitment to target £3 billion of new green infrastructure investment over the next three years.
Completion of the transaction is conditional on regulatory approvals including EU merger clearance and is expected to take about two months.
David Fass, chief executive officer of EMEA, Macquarie Group, said: “The addition of the Green Investment Bank, its people and expertise, strengthens Macquarie’s commitment to the green energy sector. Our combined platform will build on the legacy of the Green Investment Bank and, alongside our knowledge of energy and infrastructure, will open further opportunities in low-carbon investment both in the UK and further afield.
The total value of the transaction was made up of the £1.7 billion transaction price and £0.6 billion estimated future funding commitments for existing GIB projects