UK plans to sell Green Investment Bank to private investors for $5.9bn
The UK Government is planning to sell Green Investment Bank (GIB) to private investors in a deal that could worth £4.2bn ($5.9bn).
The GIB privatization process involves the sale of existing government-owned shares and also the additional capital commitment for GIB by new investors.
Launched in 2012 by the government, the GIB has made £2.6bn in investments and commitments to almost 70 environmentally friendly infrastructure projects across the UK till date.
Bloomberg cited Green Investment Bank CEO Shaun Kingsbury as saying that the government plans to sell 75% to 100% stake in the institution and the potential transaction is planned to be complete by the end of the year.
The privatization is expected to allow GIB to invest in technologies including electric vehicles and power-grid upgrades, and overseas. This is currently restricted by European Union's state aid rules.
Kingsbury added: "GIB is an exciting investment opportunity, providing new investors with predictable returns and significant growth opportunities.
"The business is perfectly placed to play a leading role as the world moves decisively towards an unprecedented program of green infrastructure investment."
A Special Share will be launched to protect the bank's green investment strategy, the Green Investment Bank said.
GIB independent chair Lord Smith of Kelvin said: "Attracting new investors is vital if GIB is to fund its ambitious plans to double the size of its business, expand into new parts of the UK green economy and deliver a growing green impact."
UK Business Secretary Sajid Javid said: "The challenge presented by climate change is clear - it is imperative we mobilize more funding for green energy projects."
Image: GIB has made £2.6bn in investments and commitments to almost 70 renewable projects in the UK. Photo: courtesy of dan/ FreeDigitalPhotos.net.