{"id":80895,"date":"2017-04-20T08:53:00","date_gmt":"2017-04-20T08:53:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=1c73216b2037006d95bb57979f98bca7"},"modified":"2017-04-20T08:53:00","modified_gmt":"2017-04-20T08:53:00","slug":"press-release-green-investment-bank-to-boost-support-for-low-carbon-projects-as-government-confirms-sale-to-macquarie","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=80895","title":{"rendered":"Press release: Green Investment Bank to boost support for low carbon projects as government confirms sale to Macquarie"},"content":{"rendered":"<div class=\"govspeak\">\n<div class=\"call-to-action\">\n<ul>\n<li>under Macquarie\u2019s ownership <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> will look to invest at least \u00a33 billion of new investment into green economy over the next 3 years<\/li>\n<li>\u00a32.3 billion deal will meet government requirements for a sale, providing value for the taxpayer while ensuring <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> continues its green mission in the private sector<\/li>\n<li>the deal has the backing of <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s independent board<\/li>\n<\/ul>\n<\/div>\n<p>The <a rel=\"external\" href=\"http:\/\/www.greeninvestmentbank.com\/\">UK Green Investment Bank plc (<abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>)<\/a> will look to invest at least \u00a33 billion into the green economy after a deal was agreed to sell it to Macquarie Group Limited (Macquarie), Climate Change and Industry Minister Nick Hurd confirmed today (20 April 2017).<\/p>\n<p>The deal, which has the backing of <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s independent board, was secured through a competitive process and will meet the objectives government outlined when it launched the sales process last year. As well as securing value for money for the taxpayer and freeing <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> from the constraints of public sector ownership, it will enable <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> to grow its support for green projects.<\/p>\n<p>Nick Hurd Climate Change and Industry Minister said:<\/p>\n<blockquote>\n<p>The Green Investment Bank has been very successful in attracting private capital to the UK\u2019s green economy. It now makes sense to move it into the private sector where it will be free from the constraints of public sector ownership, allowing it to build further on its success.<\/p>\n<p class=\"last-child\">This deal gives us the best of both worlds. We have secured fair value for the UK taxpayer. <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> has a well-funded new owner that is committed to the Bank\u2019s green mission, with a track record of success in green investment and an ambition to grow the business. The UK will benefit from increased investment in our green infrastructure as we make the transition to a green economy.<\/p>\n<\/blockquote>\n<p>Today\u2019s sale to Macquarie, with a transaction value of around \u00a32.3 billion, ensures that on completion, all taxpayer funding invested in <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> since its creation, including set-up costs, has been returned with a profit.<\/p>\n<p>Lord Smith of Kelvin, chair of <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s independent board said:<\/p>\n<blockquote>\n<p class=\"last-child\">There is a compelling logic in the world\u2019s first green bank joining forces with the world\u2019s largest infrastructure investor. When we embarked on this process, we were determined to find a new owner who would build on <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s successful history &#8211; an owner who would have access to deep pools of capital, a commitment to expand <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s activities, and a respect for the unique role <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> has played in the market. Macquarie will bring all of this to <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>, along with its own impressive track record of green investments. Its vision for the future growth of <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> demonstrates a redoubling of its commitment to a low carbon economy.<\/p>\n<\/blockquote>\n<p>Launched in 2012, <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> has been a huge success story, supporting nearly 100 green infrastructure projects in the UK to date. For every \u00a31 it has invested, it has attracted another \u00a33 of third party capital.<\/p>\n<p><abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> will become the primary vehicle for Macquarie\u2019s renewable energy investment in the UK and Europe, with a commitment to target \u00a33 billion of new green infrastructure investment over the next three years, exceeding <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s track record of committing \u00a33.4 billion of investment over the 4 and a half years since it was established.<\/p>\n<p>Macquarie has published today a series of commitments for the future of <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> under its ownership, including:<\/p>\n<ul>\n<li>maintaining <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s green purpose and green objectives, in line with the \u2018special share\u2019 arrangements to safeguard <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s green purpose which will be held by five independent trustees<\/li>\n<li>maintaining the <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> platform and brand, and to utilise the skills and experience of <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> employees in Edinburgh and London<\/li>\n<li>\n<abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s Edinburgh office will be home to a new revenue generating project delivery business providing services to the green energy portfolios of <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> and Macquarie in the UK<\/li>\n<\/ul>\n<p>David Fass, <abbr title=\"Chief Executive Officer\">CEO<\/abbr> <abbr title=\"Europe, the Middle East and Africa\">EMEA<\/abbr>, Macquarie Group, said:<\/p>\n<blockquote>\n<p class=\"last-child\">The addition of the Green Investment Bank, its people and expertise, strengthens Macquarie\u2019s 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. We are excited by a business that will take a leading role in the green economy using the specialist knowledge of our teams in Edinburgh and London.<\/p>\n<\/blockquote>\n<p>As part of the transaction, a number of <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> assets will be moved into a new offshore wind investment vehicle which will be managed by <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>, which will retain a 25% stake. Investors in this investment vehicle will be long-term institutional investors Macquarie European Infrastructure Fund 5 (MEIF5) and the Universities Superannuation Scheme (USS).<\/p>\n<p>This transaction structure matches <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s existing approach to asset ownership following its success in raising a \u00a31 billion offshore wind fund and selling three <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> assets into that fund. <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> was established to accelerate investment in new green energy projects, not to be a long-term owner of operating projects.<\/p>\n<p>The government will continue to hold a \u00a3130 million portfolio of a small number of <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s existing green infrastructure investments. These assets will continue to be managed by <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> until they are sold on in a way which returns best value for taxpayers\u2019 money.<\/p>\n<p>Since 2010, Macquarie and its managed funds have invested or arranged more than \u00a38.5 billion of capital into green energy projects globally. In the UK, Macquarie is involved in a number of green energy projects in offshore wind, solar, waste and bioenergy and tidal energy.<\/p>\n<p>The deal will support <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr>\u2019s international expansion into Europe and developing countries. As part of this, Macquarie is committed to supporting the UK Climate Investments Initiative, a \u00a3200 million pilot joint venture between <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> and the government, established to invest in renewable energy and energy efficiency projects in developing countries.<\/p>\n<h2 id=\"notes-to-editors\">Notes to editors<\/h2>\n<p>1) Completion of the transaction is conditional on certain regulatory approvals including EU merger clearance and is expected to take around 2 months.<\/p>\n<p>The total value of the transaction at the date of signing is \u00a32.3 billion, which comprises:<\/p>\n<ul>\n<li>\u00a31.7 billion transaction price<\/li>\n<li>\u00a30.6 billion estimated future funding commitments for existing <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> projects<\/li>\n<\/ul>\n<p>At completion, the total value of the transaction will adjust for any further <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> investments made between signing and completion, together with an interest rate applied between the dates of signing and completion.<\/p>\n<p>The total government funding provided to <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> since 2012 is \u00a31.5 billion. The transaction price at the date of signing represents a \u00a3160 million (approximate) premium on total government funding.<\/p>\n<p>2) The Green Purposes Company was established on 2 February 2016 to hold a \u2018special share\u2019 that safeguards the green mission of the <abbr title=\"UK Green Investment Bank plc\">GIB<\/abbr> once it moves from UK government ownership into the private sector. The trustees will formally take up their role on completion of the sale. The nominated trustees are:<\/p>\n<ul>\n<li>Tushita Ranchan (Chair), experienced green infrastructure investor and former <abbr title=\"Chief Executive Officer\">CEO<\/abbr> of a renewable energy company<\/li>\n<li>James Curran \u2013 former <abbr title=\"Chief Executive Officer\">CEO<\/abbr> of Scottish Environment Protection Agency<\/li>\n<li>Trevor Hutchings &#8211; previously a senior civil servant at the then Department of Energy and Climate Change (DECC) and currently Director of Advocacy at <abbr title=\"World Wide Fund for Nature\">WWF<\/abbr>\n<\/li>\n<li>Robin Teverson \u2013 chair of House of Lords EU select sub-committee, Energy and Environment<\/li>\n<li>Peter Young &#8211; environmentalist and former Chair, Aldersgate Group<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Climate Change and Industry Minister Nick Hurd confirms the sale of Green Investment Bank.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/80895"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=80895"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/80895\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=80895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=80895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=80895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}