The Courier & Advertiser (Fife Edition)
Green Bank bought by Macquarie in £2.3bn deal
CONTROVERSY: Greenpeace labels sale a ‘disaster’ as control of bank moves overseas
The Edinburgh-headquartered UK Green Investment Bank has been sold to Australian infrastructure group Macquarie in a £2.3 billion deal.
The deal is controversial and ministers immediately moved to stress that, under the new owners, at least £3bn will be invested in the green economy over the next three years.
The bank was launched with taxpayer cash in 2012 to channel investment into low carbon development.
Climate Change and Industry Minister Nick Hurd said: “The Green Investment Bank has been very successful in attracting private capital to the UK’s 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.”
Independent chairman Lord Smith of Kelvin said the board supported the privatisation decision to secure GIB its long-term future and growing its impact.
“There is a compelling logic in the world’s first green bank joining forces with the world’s largest infrastructure investor,” Lord Smith said.
“When we embarked on this process, we were determined to find a new owner who would build on GIB’s successful history – an 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.
“Macquarie will bring all of this to GIB, along with its own impressive track record of green investments.
“Its vision for the future growth of GIB demonstrates a redoubling of its commitment to a low-carbon economy.”
However, Doug Parr of Greenpeace UK, labelled the sale “a disaster”.
“At a time when the government should be shoring up low-carbon industry for post-Brexit Britain, they have given away one of our key tools for advancing green technologies,” he said.
Former Energy Secretary Sir Ed Davey described the sale as “environmentally irresponsible”.
Since it began, GIB has supported almost 100 green infrastructure projects from offshore wind to LED street lighting, leveraging £3 of third party capital for every £1 invested.
Macquarie Group CEO David Fass said: “The addition of the Green Investment Bank, its people and expertise, strengthens Macquarie’s 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.”