Macquarie completes acquisition of Green Investment Bank

The business, which will be headquartered in Edinburgh and have an office in London, will now be known as the Green Investment Group (GIG). This will make it easier for it to invest in green energy projects overseas, including in territories where there are legal and regulatory barriers preventing the use of the word 'bank' for its work.

The final deal is worth £2.3 billion, which includes over £500 million in existing investment commitments; and accounts for the total invested by the taxpayer into the GIB since its creation including set-up costs. Macquarie has also pledged to meet the UK government's previous commitment to facilitate the investment of at least £3bn into green projects through the business.

Climate change and industry minister Claire Perry said that the deal would free the GIB from the constraints of public sector ownership, allowing it to increase investment in green infrastructure in the UK and beyond.

"We led the world in setting up the Green Investment Bank and it is now being copied by others," she said.

"Now that it's in the private sector, it will be able to operate on an international level to tackle the global challenge of climate change. It is also perfectly placed to help us finance green initiatives for our Clean Growth Plan and realise the commitments set out in the Paris Agreement," she said.

The government will provide a report to parliament on the sale in the autumn, as required under the 2016 Enterprise Act.

Created in 2012, GIB was the world's first dedicated green investment bank. It was set up to provide finance to private sector projects which would contribute to the 'green economy' via a mixture of government and private sector funding.

A 'special share' arrangement, set up to safeguard the company's green purpose following its transition to the private sector, has now taken effect. Five independent trustees, chaired by green infrastructure investor Tushita Ranchan, will oversee the special share, giving them the power to approve or reject any proposed changes to the company's mission.

Macquarie intends to consolidate its existing UK and European investment business into the new GIG, which will become its primary vehicle for investing in green projects. The GIG will be led by Edward Northam, most recently head of investment banking at the GIB; working closely with Macquarie's senior leadership team.

"This new chapter provides the best of both worlds: a deep sector specialism coupled with access to a global platform and deep pools of capital," said Northam. "We have ambitious plans for the growth of the GIG, starting with a continuation of our role as a leading investor in the UK and building on that through an additional international focus."