Macquarie Completes Green Investment Bank Buy

A Macquarie-led consortium has completed the acquisition of the Green Investment Bank from the UK government for GBP 2.3 billion.

The consortium comprises Macquarie Group Limited, Macquarie European Infrastructure Fund 5 (MEIF5) and Universities Superannuation Scheme (USS).

Macquarie said that the Green Investment Bank will remain one of the leading investors in green infrastructure in the UK and Europe, with added scope to further expand internationally.

Macquarie will adopt the Green Investment Bank as its primary vehicle for principal investment in green projects in the UK and Europe and will consolidate its own existing UK and European principal investment business into that vehicle.

The Green Investment Bank will work together with the Green Purposes Company Trustees to ensure all investments are aligned with its green purpose, Macquarie said. This will include publishing an annual report, featuring details of its green performance, and holding an annual industry day for stakeholders; the first of which will be held prior to the end of 2017.

As previously announced, Macquarie has committed to the Green Investment Bank’s target of leading GBP 3 billion of investment in green energy projects over the next three years, operating in accordance with its established green purpose.

In line with these commitments and in order to pursue the Green Investment Bank’s vision to invest in green infrastructure internationally and positively contribute to the globalisation of the renewables industry, the Green Investment Bank will now operate under the name Green Investment Group. This is necessary to overcome the legal and regulatory barriers to using the term “Bank” in many international markets, Macquarie said.

The team will continue to be based in Edinburgh and London.

The Green Investment Group will be led by Edward Northam, working closely with Macquarie Capital’s senior leadership team. Shaun Kingsbury will now step down from his role as Chief Executive Officer and will not join Macquarie Group.

The Green Investment Group will continue to collaborate with the Department of Business, Energy and Industrial Strategy in the joint venture UK Climate Investments LLP (UKCI). The Green Investment Group remains committed to UKCI and its vision to invest in green infrastructure in selected developing countries.

Daniel Wong, Head of Macquarie Capital Europe, said: “Combined with Macquarie’s resources as the world’s largest infrastructure investor, the Green Investment Group will be uniquely placed to continue in its pioneering role in the world’s transition to a low-carbon economy. We look forward to growing the Green Investment Group’s capacity and its contribution to the UK and global renewables markets.”