• Busting Uber myths

    The ehailing firm is constantly trying, succeeding - and sometimes failing, says Ian Mann.

  • Trapped in a democracy

    The very people elected to bring benefits to all are undermining SA, says Solly Moeng.

  • Marikana spectre

    Five years after the bloody massacre calls for justice are growing louder, says Terry Bell.

Loading...

UK govt sells green bank in £2.3bn deal

Apr 20 2017 16:38

London - The UK Green Investment Bank (GIB), created by the British government to fund environmental projects, is to be sold to Australian financial services firm Macquarie Group in a £2.3bn deal, the government said Thursday.

Under the deal, worth $2.6bn, Macquarie has vowed to invest at least 3 billion of new funds into Britain's green economy over the next three years.

The government, GIB's sole shareholder, launched the sales process to privatise the fund last year.

"The Green Investment Bank has been very successful in attracting private capital to the UK's green economy," said Nick Hurd, Climate Change and Industry Minister.

"It now makes sense to move it into the private sector where it will be free from the constraints of public sector ownership".

Macquarie Group's David Fass said the deal "will open further opportunities in low carbon investment both in the UK and further afield."

The GIB was created in 2012 to attract private investment and has so far helped fund around 100 green projects with a total capital expenditure of around 3.4 billion, including more than 1 billion in large infrastructure projects.

The fund has invested in six offshore wind farms and a new energy-from-waste plant in North Wales.

The £2.3bn deal comprises a 1.7 billion transaction price and a 0.6 billion commitment for existing projects.

Robert Smith, chair of GIB's board, said there was "compelling logic" behind the deal.

"We were determined to find a new owner...who would have access to deep pools of capital, a commitment to expand GIB's activities, and a respect for the unique role GIB has played in the market."

Read Fin24's top stories trending on Twitter:

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

uk  |  financial services  |  banking

NEXT ON FIN24X

 
 
 
 

Company Snapshot

We're Talking About...

Savings Month

It's never too late to start saving. Visit our special issue and add your voice.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The proposal to nationalise SARB will

Previous results · Suggest a vote

Loading...