A Macquarie-led consortium will acquire a UK investment bank for £2.3 billion ($3.9 billion) and merge it with its existing UK infrastructure business.
Macquarie, along with the Universities Superannuation Scheme (USS), purchased the Green Investment Bank from the UK government under a special share arrangement where five independent trustees will ensure Macquarie preserves the bank's green energy focus.
Macquarie said that upon the acquisition's completion, the Green Investment Bank will oversee about $7 billion in green infrastructure assets, and will become Macquarie's primary vehicle for green infrastructure projects in the region. Three new investment vehicles - focusing on offshore wind, low carbon lending and green infrastructure - will also be established.
As mentioned, Macquarie's existing UK green energy business will be merged into the bank. The group will maintain Green Investment Bank's brand and Edinburgh offices as well as a "substantial staff presence in the city."
Investors in the bank will include Macquarie European Infrastructure Fund 5, USS, GCP Infrastructure and the UK government.
Macquarie Capital's European head Daniel Wong said: "It is a privilege to be selected by HM Government to acquire the Green Investment Bank. The Green Investment Bank is a pioneering business, with outstanding people, expertise, credentials, brand and networks."
"By combining the Green Investment Bank with the largest infrastructure investor in the world, we will create a market leading platform dedicated to investment in the low carbon economy in the UK and beyond. We understand the responsibilities that come with this ownership, and we are fully committed to maintaining its green purpose as we grow the business," Wong said.
Subject to regulatory approval, Macquarie will finalise the acquisition in the first half of this year.