Majority stake in Green Investment Bank to be sold off

25 Jun 15

The government is to begin to move the flagship Green Investment Bank into private ownership, business secretary Sajid Javid confirmed today.

Javid said the detail and timing of the disposal would depend on the outcome of discussions, but it was the government’s intention to sell “at least a majority” of the bank’s shares to private investors over the lifetime of the current Parliament.

He stressed that the sell off did not mean the government was reneging on its environmental concerns.

“The bank will still be green, still be profitable, still be a market-leader in financing environmentally sound infrastructure. But it will be free from limitations on where it can borrow money and free from EU regulations on state aid, the bank will be able to access a much greater volume of capital,” Javid said.

He added that the decision had the full backing of the bank’s management and board.

The Green Investment Bank is the first of its kind in the world and was set up in 2012 with £3.8bn of public funding to invest in wind power, bio-energy and renewal projects. To date, the bank has invested about £2bn of public money in around 50 green infrastructure projects.

Read Public Finance’s interview with Green Investment Bank chief executive Shaun Kingsbury

  • Judith Ugwumadu

    Judith Ugwumadu joined Public Finance International and Public Finance online as a reporter after stints at Financial Adviser, Global Security Finance and The Sunday Express. Currently, she writes about public finance, public services and economics.

    Follow her on @JudithUgwumadu_

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