Business secretary Sajid Javid (pictured) confirmed that the government will proceed with plans to bring private capital into the Green Investment Bank (GIB) during a speech at the bank’s Annual Review event in London today (25 June).
The intention to bring in private capital was first announced in the 2013 Autumn Statement, and in his speech Mr Javid said the time was now right to begin the process of moving the bank into private ownership.
“The GIB has shown that investment in green technologies can be a profitable business. The challenge now is to build on this success,” he said.
“The bank will still be green, still be profitable, still be a market leader in financing environmentally sound infrastructure. But free from limitations on where it can borrow money and EU regulations on state aid, it will be able to access a much greater volume of capital.”
Chancellor of the Exchequer George Osborne said: “We want the GIB to attract more investment and we will use the money we raise to pay down the national debt and deliver lasting economic security for working people.”
Since its inception in 2012, the GIB has committed £2bn and helped to finance 50 green infrastructure projects including helping to finance first-of-a-kind schemes that use innovative technologies in waste management and offshore wind power.
The government and the GIB will now actively engage with potential investorsand explore the scope for a transaction that will deliver value for money for the taxpayer.
The detail and timing of any transaction will depend on the outcome of these discussions.