The £2.3 billion sale of the UK’s Green Investment Bank (GIB) to the Macquarie Group has been confirmed.
The deal was officially announced by Climate Change Minister Nick Hurd earlier today.
The institution, which was set up by the UK Government five years ago to fund renewable and low carbon projects, will retain its name, objectives and Edinburgh-based team.
The UK Treasury will secure £1.7 billion through the process, with £600 million of liabilities to be taken on by the Australia-based business lender.
The GIB has invested in the region of £800 million each year it has been running so far – Macquarie has said it aims to lead around £3 billion of investment over the next three years.
The UK Government will continue to hold a £130 million portfolio of a small number of the GIB’s existing green infrastructure investments.
Lord Smith of Kelvin, Independent Chair of GIB, said: “The GIB Board supported the decision to privatise GIB as it believed that attracting new investors was the best available route to securing the long term future of the business and its growing green impact.
“GIB in private ownership can and should continue to play an important leadership role in supporting the global low carbon transition and the UK Government’s ambitious plans for a strengthened industrial strategy and emissions reduction.”
Some reports suggest GIB assets risk being sold off after the state owned company is privatised.