Macquarie Finalises US$2.94 billion Takeover of Green Investment Bank

Source: www.gulfoilandgas.com 8/24/2017, Location: Europe

Macquarie, the Australian infrastructure investor, has completed its GBP2.3 billion (US$2.94 billion) takeover of the UK government-owned Green Investment Bank (GIB), which will now be called the Green Investment Group (GIG).

The bank says that GIG will help to spread renewable technologies around the world as it expands its scope beyond the UK and Europe and incorporates Macquarie’s existing green investment portfolio.

Between them, Macquarie Capital, the group’s investment arm, and GIB have led more than GBP15 billion (US$19.2 billion) of investment in the UK across a broad range of renewables technologies, the bank says. These include: energy efficiency, bioenergy, energy from waste, onshore and offshore wind, low carbon transport, solar and tidal energy and energy storage.

The sale attracted widespread criticism from lawmakers and environmentalists, who saw the sale as a step back from the government’s commitment to encouraging clean technology.

However, Macquarie said that the switch from public to private ownership was a sign of how the renewable energy sector is evolving from dependence on government support to becoming a part of the mainstream energy sector.

Edward Northam, formerly GIB’s head of investment banking, will lead GIG and says that “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”. He told the Financial Times that the GIB’s original role of proving to mainstream investors that green energy was an investable proposition was no longer needed thanks to the industry’s stellar growth in recent years.

Lord Smith of Kelvin, chair of the Green Investment Bank up to the completion of the transaction, said: “If the Paris Agreement is to be delivered, we need to see mature green infrastructure delivered quickly and at scale, alongside the rapid development of emerging technologies.

To achieve this, the world needs committed, innovative, specialist, experienced investors with access to deep and flexible pools of capital. The Green Investment Group will now have the platform to meet that market need and fulfil its full potential.”

Macquarie has pledged that GIG will invest at least GBP3 billion (US$3.84 billion) in green projects over the next three years. It has previously been a big investor in offshore wind but would expand its portfolio to less mature technologies such as batteries and tidal power, the bank added.

It has already moved to offload a number of assets, including four biomass and waste-to-energy facilities, 15 anaerobic digestion plants and a materials recovery site.


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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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