Macquarie completes acquisition of Green Investment Bank

A Macquarie-led consortium has completed the acquisition of the UK’s Green Investment Bank, an early investor in offshore wind projects, from the UK government for £2.3Bn (US$3Bn).

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

Macquarie said it would “work together with the Green Purposes Company Trustees to ensure all investments are aligned with its green purpose,” and invest £3Bn in green projects in the next three years, “operating in accordance with its established green purpose.”

When the deal was first announced concern was expressed about how Macquarie might treat the bank and about its commitment to continuing to fund green energy projects. The UK’s former business secretary, Sir Vince Cable warned that Macquarie might ‘asset strip’ the bank.

To be renamed Green Investment Group, it will be led by Edward Northam, who joined the Green Investment Bank in 2012 and was most recently its head of investment banking. Mr Northam’s appointment follows a career spanning almost 25 years in renewable energy and infrastructure development. Shaun Kingsbury will step down from his role as chief executive officer and will not join Macquarie Group.

Head of Macquarie Capital Europe, Daniel Wong 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.”

Mr Northam said “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. We have ambitious plans for the growth of the Green Investment Group, starting with a continuation of our role as a leading investor in the UK and building on that through an additional international focus.”

Macquarie will use the group 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.