The UK government announced Thursday the sale of its Green Investment Bank (GIB) to a Macquarie-led consortium for £2.3 billion ($2.94 billion), making a “substantial profit” from privatization, Kallanish Energy reports.
GIB was the world’s first dedicated green investment bank, created in 2012 and aimed at accelerating private sector investment in the UK green economy. The bank has attracted nearly 100 green infrastructure projects in the country so far, raising £3 of third-party funding for every £1 it invested.
Nick Hurd, minister of state for Business, Energy & Industrial Strategy, said the deal “secures a profit on the government’s investment in the bank, provides value for taxpayers and ensures GIB continues its green mission, in the private sector … free from the constraints of public sector ownership.”
The bank’s independent chair, Lord Smith of Kelvin, said the board supported the decision to privatize GIB as it believed attracting new investors “was the best available route to securing the long-term future of the business and its growing green impact.”
The transaction is expected to close in two months and is subject to regulatory approvals, including EU merger clearance. Macquarie European Infrastructure Fund 5 (MEIF5) and Universities Superannuation Scheme (USS) are the other investors in the consortium.