A consortium of investors, led by Macquarie and including the £57bn Universities Superannuation Scheme (USS), has agreed to buy the UK Green Investment Bank (GIB) from the government.
The group, which also includes the Macquarie European Infrastructure Fund 5 (MEIF5) and GCP Infrastructure, paid £2.3bn for the GIB which manages and supervises more than £4bn of green infrastructure assets and projects.
Upon completion, which is expected during the first half of this year, Macquarie will be the owner of the GIB with ‘special share’ arrangements to be held by the Green Purpose Company. This company, established in February 2016, will be operated by five independent trustees to ensure the GIB continues to operate in accordance with its green principles once it moves from UK government ownership into the private sector.
In a statement Macquarie said it was committed to the GIB’s newly established target of £3bn of new investment in green energy projects over the next three years, either directly or by arranging capital from other investors.
Macquarie said the GIB will establish three new investment vehicles: an offshore wind investment vehicle, a low carbon lending platform and a green infrastructure investment platform. It will also target investments in both equity and debt and at all project stages including development, construction and operation.
Both USS and MEIF5 will invest in the offshore wind investment vehicle, while USS and GCP Infrastructure will invest in the low carbon lending platform.
Macquarie Capital European head, Daniel Wong, added it was a “privilege” to be selected by the government to acquire the GIB.
“The Green Investment Bank is a pioneering business, with outstanding people, expertise, credentials, brand and networks,” he added.
USS head of private markets Mike Powell said the deal enabled the scheme to acquire a portfolio of high quality renewable energy assets on behalf of its members.
“The assets include offshore wind projects and a portfolio of renewable loans, illustrating our capability to invest across the capital structure,” he added. “We look forward to continuing our relationship with the Green Investment Bank and finding new opportunities to invest in the low carbon economy in the UK.”
Macquarie Infrastructure and Real Assets global head, Martin Stanley, said the acquisition would provide other institutional investors in the MEIF5 with “long-term exposure to well-managed businesses in well-regulated and established markets”.
“The opportunity to deploy capital from MEIF5 into the Green Investment Bank’s offshore wind platform provides the fund with an attractive investment in a diverse portfolio of offshore wind assets in the UK,” he added.
