A Macquarie-led consortium, comprising Macquarie Group Limited (Macquarie), Macquarie European Infrastructure Fund 5 (MEIF5) and Universities Superannuation Scheme (USS), has agreed to acquire the UK Green Investment Bank plc (Green Investment Bank) from the country’s government for £2.3 billion.
Upon completion, Macquarie will be the owner of the Green Investment Bank with ‘special share’ arrangements to safeguard its green purpose which will be held by five independent trustees.
Upon transaction completion, the Green Investment Bank will manage or supervise over £4 billion of green infrastructure assets and projects, with investors including MEIF5, USS, GCP Infrastructure and the UK Government. Specifically, the Green Investment Bank will establish three new investment vehicles – an offshore wind investment vehicle, a low carbon lending platform and a green infrastructure investment platform.
“It is a privilege to be selected by HM Government to acquire the Green Investment Bank,” commented Daniel Wong, Head of Macquarie Capital, Europe. “The Green Investment Bank is a pioneering business, with outstanding people, expertise, credentials, brand and networks. By combining the Green Investment Bank with the largest infrastructure investor in the world, we will create a market leading platform dedicated to investment in the low carbon economy in the UK and beyond. We understand the responsibilities that come with this ownership, and we are fully committed to maintaining its green purpose as we grow the business.”
The Green Investment Bank will become Macquarie’s platform for principal investments in green infrastructure projects in the UK and Europe. The bank’s platform, brand and Edinburgh office will be maintained with a substantial staff presence in the city. The business will be led by senior Green Investment Bank executives, supported by key existing functions.
The transaction is expected to complete in the first half of 2017 subject to regulatory approvals and is not material to Macquarie Group’s earnings and financial position.
