(21 August 2017 – United Kingdom) Macquarie Group has completed its £2.3 billion (A$3.73 billion) Green Investment Bank (GIB) deal.
Australia’s 5th largest bank said the takeover of the GIB will support globalisation of the renewable energy industry as it prepares to expand its newly acquired UK fund into the rest of Europe.
An agreement was reached with the British government in April to sell the GIB to Macquarie amid concern and criticism from politicians and environmentalists.
Macquarie announced the completion of the deal last week, saying it should be viewed positively, and as a sign that renewable energy is evolving from being dependent on government support to competing for investment from global players.
Head of Investment Banking at GIB, Edward Northam, will lead the business at Macquarie. He said, “When we started in 2012 . . . it was about proving to mainstream institutional investors that you can deliver a financial as well as an environmental return,” he told the Financial Times. “The industry is now different. It has proved its investability.”
GIB will be renamed Green Investment Group to ensure there are no regulatory barriers around the use of “bank”, Macquarie said, adding that the new brand will lead its push in green energy projects in Europe.
Mark Dooley, head of energy and infrastructure for Macquarie Capital in Europe said, “This country is the most productive in terms of deal flow and opportunity and the consequence of that is that a very large part of our business is located here.
“If you look at our combined project pipelines, a very substantial part is in the UK and I do not expect that to change.”