Three teams bid for UK Green Investment Bank

Three teams are bidding for the acquisition of the entire Government's shareholding in the Green Investment Bank, which has a value of £4 billion (US$5.8 billion).

According to sources, this notice has been released by ministers in an attempt to raise the price of the privatization.

In early March, we reported that the UK Government had confirmed it was launching the UK Green Investment Bank plc (GIB) sale process. The transaction would involve both the sale of existing shares owned by the Government and also the commitment of additional capital for GIB by new investors.

The three shortlisted teams that could acquire GIB are the following:

• A team that includes Sustainable Development Capital Ltd, Pension Protection Fund (PPF), GE, Mitsui and John Hancock. The team is being advised by HSBC and JP Morgan.
• Macquarie group, which is being advised by Royal Bank of Canada.
• A consortium comprising KKR and Temporis Capital.

Ministers are being advised on the sale by Bank of America Merrill Lynch, while the GIB's board is being advised by UBS.

UK GIB has committed £2.6 billion of capital to almost 70 green infrastructure projects across the UK. It is the most active investor in UK green infrastructure with leading market share and a clearly identified near-term UK pipeline of new transactions. GIB is well placed to play a leading role in a large and growing global market with compelling long term dynamics.

GIB’s existing portfolio of assets is performing strongly and is well diversified across different financial products, sectors, structures, technologies and counter-parties. GIB has a proven track record of enhancing the value of assets under its management.