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Macquarie completes Green Investment Bank acquisition

Macquarie has completed its £2.3bn takeover of the Green Investment Bank (GIB), renaming it the Green Investment Group (GIG).

Macquarie says the group, previously owned by the Government, is now its primary vehicle for principal investment in green projects in the UK and Europe, and will consolidate its own existing UK and European ‘green’ investment business into it.

The word ‘bank’ has been ditched “to overcome the legal and regulatory barriers to using the term in many international markets”.

Landscape Shaun Kingsbury

Landscape Kingsbury Shaun

Chief executive Shaun Kingsbury (pictured) has left the business and is replaced by former senior colleague Ed Northam (above). Macquarie’s statement confirming the acquisition said Kingsbury ”played an important role in establishing the GIB and has provided valued support throughout the transition period”.

Northam joined the GIB in 2012 and was most recently head of investment banking.

He 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.”

After the Government decided to sell the bank, it established a Green Purposes Company (GPC) with a ‘special share’ to safeguard the green mission of the GIB and its subsidiaries.

A statement from GPC marking the completion of the sale repeated a comment made by the trustees when the sale to Macquarie was announced in April.

”The trustees look forward to working constructively with Macquarie to ensure that the GIB continues to play a leading role in supporting green investment in the UK and beyond.

”We expect the GIB, together with its subsidiaries, to continue to act both in compliance with, and in the spirit of, its green objectives.”

The new owner has committed to the GIB’s target of leading £3bn of investment in green energy projects during the next three years.

The Aldersgate Group, representing business, political and others seeking a sustainable economy, urged the GIG to honour the commitment to invest in the UK’s renewable energy infrastructure.

Nick Molho, executive director, said: “Delivering the Government’s ambitions under the Clean Growth Plan and 25-year environment plan will require supporting novel technologies and business models which may initially struggle to access finance.

“Now that the sale of the GIB is complete and, given that the UK’s access to funds from the European Investment Bank is likely to be more restricted after Brexit, the Government needs to develop a clear finance strategy in the near future.

“This strategy should aim to crowd in private sector investment in the new technologies and business models the UK will need to deliver on its environmental commitments and build a thriving low-carbon economy.”

Macquarie Capital, the advisory, capital markets and principal investment arm of Macquarie Group, and the GIB have together invested more than £15bn across renewables technologies in the UK including bioenergy, energy from waste, onshore and offshore wind, low-carbon transport and energy storage.

GPC trustees

  • Tushita Ranchan (chair) – green infrastructure investor and former chief executive of a renewable energy company
  • James Curran – former chief executive of the Scottish Environment Protection Agency
  • Trevor Hutchings – director of strategy, Gemserv, previously a senior civil servant at the former Department of Energy and Climate Change, former director of advocacy at WWF
  • Robin Teverson – chair of House of Lords EU select sub-committee, Energy and Environment, trustee Regen SW, board member Marine Management Organisation
  • Peter Young – environmentalist and former chair, Aldersgate Group

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