Transactions - APRIL 20, 2017

Macquarie-led consortium buys U.K.’s Green Investment Bank for $3b

by Andrea Waitrovich

A consortium led by Macquarie Group has acquired the U.K.-based Green Investment Bank from the British government for €2.3 billion ($3 billion).

Macquarie will transfer its renewables business to Green Bank, which basically operates as a fund and not a bank. It is part of the firm’s commitment to investing in U.K. renewable energy and infrastructure.

Sydney-based Macquarie will set up three investment vehicles to deliver on the Green Investment Bank’s target for £3 billion ($3.85 billion) in new spending over the next three years. It would fund technologies ranging from offshore wind power to battery storage and tidal lagoon. The firm is currently advising Tidal Lagoon Plc on Swansea Bay Tidal Lagoon in southwest Wales, which would be the world’s first tidal lagoon power plant.

It will set up an offshore wind investment vehicle that will be funded by Universities Superannuation Scheme Ltd. and Macquarie European Infrastructure Fund 5. Another “low carbon lending platform” will be funded by USS and GCPInfrastructure Investments Ltd.

A third green infrastructure platform will be backed by the U.K. government.

The sale is expected to be completed in the first half of 2017.



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