Posted on: 09/02/2016
The UK Government is creating a “special share” in its Green Investment Bank (GIB’s) as it prepares to privatise the institution.
If the new owner wants to change the GIB’s charter then it will need permission from the special shareholder, which will be independent of ministers and the bank.
Business Secretary Sajid Javid said: “Moving the GIB into private ownership makes sense. If you want it to have access to more capital, to make bigger investments and have a bigger impact in green sectors, it is the best course of action.
“To ensure the bank’s green credentials are maintained it plans to put a special share structure in place that protects its green mission and keeps it focused on what it does best.”
Wind farm acquisition
Lord Smith of Kelvin, Chair of the GIB, added: “I have always been confident that any new investor in GIB will be strongly committed to our green mission – our commitment to, and expertise in, green investment is the very reason they would be investing in us.
“That said, I understand the concern among some of our stakeholders over the legislative changes, so I am delighted we have been able to offer them the additional commitment that a special share will bring.”
News of the creation of the special share came as the GIB – alongside funds managed by BlackRock – bought three wind farms from British Gas-owner Centrica for £423 million.
> Read the GIB's announcement