Macquarie finalises £2.3bn Green Investment Bank deal

It, however, will change its name to Green Investment Group (GIG) in order to overcome legal and regulatory barriers that prevent it from using the term "Bank" in many global markets, Macquarie explained in a separate release.

Australian investment bank Macquarie said in a statement that its consortium has now tied up the £2.3bn deal.

"The Green Investment Bank's environmental mission is in danger of disappearing under the ownership of a private Australian bank whose track record does not inspire confidence".

Macquarie has committed to the Green Investment Bank's target of leading £3bn of investment in green energy projects over the next three years, operating in accordance with its established green goal.

"The government was repeatedly warned that selling the GIB to Macquarie could result in asset-stripping and leave the bank unfit for objective", he said.

The Green Investment Bank will also now operate under the name Green Investment Group to overcome the legal and regulatory barriers to using the term "bank" in many worldwide markets.

The deal ensures that all the taxpayer funding invested in GIB since its creation, including set-up costs, has been returned with a gain of approximately £186m.

Lord Smith of Kelvin, chairman of the Green Investment Bank up to the completion of the transaction, said: "Under Macquarie ownership, the business will have the support it needs to deliver a growing green impact, at home in the United Kingdom and now overseas".

Macquarie said it would change GIB's name to Green Investment Group to overcome regulatory barriers to using the term "bank" in some worldwide markets.

The bank was set up by the United Kingdom government five years ago to fund renewable and low-carbon projects. Now that it's in the private sector, it will be able to operate on an worldwide level to tackle the global challenge of climate change.

"The GIG is ideally placed to lead private sector investment in United Kingdom green infrastructure projects and help deliver key government policy commitments such as those that will be set out in the upcoming Clean Growth Plan".

"Following the successful completion of the sale of the GIB today, we call on the new GIG to honour their commitment to support investment in the UK's renewable energy infrastructure", Aldersgate Group executive director Nick Molho said.