Green Investment Bank sold to Australian firm
The bank has already set out a target to invest £3 billion over the next three years in green projects.
A consortium led by Australian bank Macquarie Group Ltd. bought the United Kingdom.
The Green Investment Bank will build on an unrivalled track record of investing in United Kingdom green infrastructure.
Macquarie today committed to maintain GIB's investment approach of supporting low-carbon infrastructure projects, as well as its platform and brand.
On Thursday local time Macquarie announced it had won the much-delayed bid to buy up the GIB.
Scottish Greens MSP for the Lothians Andy Wightman says the bank's new ownership leaves its environmental credentials "in tatters".
A new asset management division is being set up in the Scottish capital.
However, the sale, in which the Australian group will pay £2.3 billion for the bank, drew criticism yesterday. Ministers have rushed to privatise the bank without consultation or proper consideration of the alternatives. The government has chose to sell it off without transparency or consideration of the alternatives.
As well as the political opposition, Sustainable Development Capital, a rival bidder for the bank, further delayed confirmation of the sale by challenging the deal at the High Court.
Macquarie has pledged to invest £3 billion in green projects and has made other concessions in order to clinch the purchase of the Green Investment Bank from the government.
The government will continue to hold a £130m portfolio of a small number of GIB's existing green infrastructure investments, he added. The transaction is expected to complete in the first half of 2017.
Macquarie has committed to a £3bn target for new green infrastructure investment over the next three years as part of the acquisition with GIB to be the primary vehicle for renewables spending in the United Kingdom and Europe.
Since it was set up it supported more than 100 renewable and low-carbon projects across the United Kingdom and raised £3 of third party capital for every £1 it invested.
GIB was created in 2012 with the goal of accelerating private sector investment into the United Kingdom 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".
It will become Macquarie's platform for principal investments in United Kingdom and European green infrastructure.
Clifford Chance (CC) also played a role on the sale, acting for the lenders to Macquarie with a team consisting of banking partner Michael Bates, derivatives partner Anne Drakeford and corporate partner Amy Mahon.
He continued: "This deal gives us the best of both worlds. We look forward to seeing these commitments from Macquarie delivered, in full".
"Its vision for the future growth of GIB demonstrates a redoubling of its commitment to a low-carbon economy".