Offshore Wind
Announcements prior to September 2017, including this announcement, occurred under previous ownership.
01 April 2015
The UK Green Investment Bank plc (GIB) has announced that its FCA regulated subsidiary, UK Green Investment Bank Financial Services Limited (GIBFS), has reached first close on commitments of £463m on its planned £1bn fund to invest in operating offshore wind farms in the UK.
First close marks the completion of the first stage of fundraising and is triggered by the commitment of an initial group of investors.
The initial investors comprise UK-based pension funds and a major sovereign wealth fund. GIB is also investing £200m in the fund. Fundraising continues and GIBFS expects to raise additional funds from other investors to reach the £1bn target.
In addition to the £463m of fund commitments raised, an additional significant amount of investor capital is available to co-invest into projects alongside the fund.
The fund is an innovative, first-of-a-kind transaction. It is the world’s first fund dedicated to investments in offshore wind power generation and, once fully subscribed, will be the largest renewables fund in the UK. The fund has an expected life of 25 years, allowing a new class of long-term investor to enter the sector.
This is the first fund raised by the GIB group and its first step into asset management. It is also the first private capital to be managed by the GIB group. It will be managed by a new FCA-regulated and authorised subsidiary called UK Green Investment Bank Financial Services Limited which is staffed by a dedicated team.
GIB has now transferred its investments in two operating assets into the fund, which will produce immediate cash yield for investors. They include:
These two offshore wind farms are able to produce 1,290 GWh of renewable energy annually, enough to power 305,000 UK homes. The fund also has a strong pipeline of future investment opportunities.
Evercore Private Funds Group is acting as advisor and exclusive global placement agent for the fundraise and King & Wood Mallesons is acting as legal counsel to the fund.
Shaun Kingsbury
Chief Executive of the UK Green Investment Bank
Karl Smith
Fund Managing Director
GIB’s financial year ends on 31 March 2015. During the year 2014/15, in addition to reaching first close on the Offshore Wind Fund, GIB has:
GIB will publish its Annual Report for 2014/15 in June and hold its Annual Review meetings on 24 June in Edinburgh and 25 June in London.
Media enquiries