The government has sold the Green Investment Bank in a bid to attract greater amounts of capital.
It has been sold for £2.3bn to Australian bank Macquarie but a special share has been created which will give the holder the right to approve or reject any change to the green purposes of the GIB.
Nick Hurd, the minister for climate change and industry, said: “GIB has been a real success story since it was created in 2012 – the world’s first dedicated green investment bank, established to accelerate private sector investment into the UK green economy.
“It has fulfilled that mission, supporting almost 100 green infrastructure projects in the UK so far, and attracting £3 of third party funding for every £1 it invests.
“It has shown, as it set out to do, that green investment can be both green and profitable.
“Having demonstrated its success, the government decided to move GIB into the private sector where it can continue its success on an even greater scale.”
When the deal is completed, the GIB will manage or supervise more than £4bn of green infrastructure assets and projects.
It will establish three new investment vehicles – an offshore wind investment vehicle, a low carbon lending platform and a green infrastructure investment platform.
It will become Macquarie’s platform for principal investments in UK and European green infrastructure.
Daniel Wong, head of Macquarie Capital Europe, said: “By combining the Green Investment Bank with the largest infrastructure investor in the world, we will create a market leading platform dedicated to investment in the low carbon economy in the UK and beyond.
“We understand the responsibilities that come with this ownership, and we are fully committed to maintaining its green purpose as we grow the business.”
Five independent trustees have been appointed to hold the bank’s special share and they will take up their positions once the sale is complete.