The UK Government (the Government) has today announced that the UK Green Investment Bank (GIB) will create a ‘special share’ in the company as part of the process to introduce private capital to the organisation.
The special share will be held by a separate company independent of both GIB and the Government, subject to the successful conclusion of a transaction. GIB would not be able to make changes to its green mission, as set out in the Objects of its Articles of Association, unless this Special Shareholder gives its consent.
GIB’s green mission requires each individual GIB investment to contribute to meeting one of five ‘green purposes’ and a wider portfolio which makes a positive overall reduction in greenhouse gas emissions (see detail below).
UK Business Secretary Sajid Javid said:
Moving the Green Investment Bank 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.
Lord Smith of Kelvin, Chair of UK Green Investment Bank, said:
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.
Notes to editors
1. The green purposes of the UK Green Investment Bank, as set out in its Articles of Association are:
- The reduction of greenhouse gas emissions
- The advancement of efficiency in the use of natural resources
- The protection or enhancement of the natural environment
- The protection or enhancement of biodiversity
- The promotion of environmental sustainability
The Objects also require the Board of GIB to be satisfied that its investments, taken together, will or are likely to make a positive contribution to a reduction in greenhouse gas emissions.
2. Enterprise Bill 2015-16
The latest position on the Bill can be found here.
3. About the UK Green Investment Bank
UK Green Investment Bank plc (GIB) was launched in November 2012. With £3.8 billion of funding from the UK Government, it is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of Government.
GIB is wholly owned by HM Government. The Company is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. A wholly owned subsidiary UK Green Investment Bank Financial Services Limited, is authorised and regulated by the Financial Conduct Authority.