Introduction to the Green Investment Bank
Investing in Infrastructure – Exploring the Challenges to Effective Delivery
Belfast
Speaker: Adrian Judge
13th February 2013
WHY CREATE A GREEN INVESTMENT BANK?
• The Government has ambitious green targets, with a suite of policies in
place to support their achievement
• Even after these measures, finance-related issues will continue to limit the
scale and pace of the transition to a green economy
• The market challenge has been exacerbated by the impact of the global
financial crisis on bank balance sheets, and in particular on the market for
long-term project debt
• The Coalition Agreement of May 2010 committed to setting up a Green
Investment Bank
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OVERVIEW
• To accelerate investment in the UK’s transition to a green
Mission
economy and to create an enduring institution, operating
at arm’s length from government
Funding
• £3bn to invest over 3 years, starting April 2012
• State Aid Approval granted 17th October 2012
GIB
• GIB now fully operational
• Investments already announced across all sectors
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GIB – WHAT WE ARE
Enduring
Institution
• “For profits” organisation, seeking a commercial riskadjusted rate of return on its investments
• Does not “crowd out” private sector
Additional
• Mobilising other capital – “crowd in”
• Priority Sectors:
Green
• Offshore Wind
• Non Domestic Energy Efficiency + on site
renewables
• Green Deal
UK
• Waste (Recycling & Energy)
• Other: (e.g. biomass, biofuels, renewable heat)
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GIB – WHAT WE ARE (CONT’D)
Responsible
Investor
Flexible bespoke
solutions
Policy
Consistency
Recycle Capital
• Clients need to meet highest environmental, governance
and social standards
• We can offer debt, mezzanine, equity, guarantees
• Scope to develop new products
• Supporting Government’s green policies
• £3bn capital vs. total priority sector investment funding
requirement to 2020 of > £200bn
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GIB – WHAT WE ARE NOT
• Provider of grants / regional assistance
• Provider of subsidised debt / equity
• Taker of high risk / low reward
• Provider of Venture Capital
• Provider Development Equity
• Financial Advisors
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INVESTMENTS TO DATE
£m
Walney Offshore Wind Farm
45
Waste Funds (Foresight, Greensphere)
80
Energy Efficiency Funds (SDCL,
Equitix)
100
Wakefield Waste
32
Drax Conversion
100
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CONTACT DETAILS
Shaun Kingsbury
Chief Executive Officer
0330 123 3050 shaun.kingsbury@greeninvestmentbank.com
Ian Nolan
Chief Investment Officer
0330 123 3054 ian.nolan@greeninvestmentbank.com
Stephen Crane
Managing Director
Offshore Wind
0330 123 3069 stephen.crane@greeninvestmentbank.com
Charles Abel Smith Director NDEE
0330 123 3048 charles.abelsmith@greeninvestmentbank.com
Adrian Judge
Managing Director
Waste & Bioenergy
0330 123 3041 adrian.judge@greeninvestmentbank.com
Edward Northam
Managing Director
Waste & Bioenergy
0330 123 3052 edward.northam@greeninvestmentbank.com
Edinburgh
Exchange Place 2
5 Semple Street
Edinburgh
EH3 8BL
London
13th Floor
21-24 Millbank
SW1P 4QP
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DISCLAIMER
The information in this [workbook]/[document] and any accompanying material (“The Document”) is confidential and commercially sensitive. This Document is provided to each recipient
on a confidential basis solely for information purposes only. No reliance can be placed on this Document by any recipient or any other person. This Document and its contents are
confidential to the person to whom it is delivered and must not be reproduced or distributed, either in whole or in part, nor its contents disclosed by such persons to any other person
without the prior written consent of UK Green Investment Bank plc. Except as required by law, neither UK Green Investment Bank Plc nor any of its connected persons accepts any
liability or responsibility for the accuracy or completeness of, or makes any representation or warranty, express or implied, with respect to the information contained in this Document or
on which this Document is based or any other information or representations supplied to the recipient. UK Green Investment Bank plc will not act and has not acted as your legal, tax,
accounting or investment adviser. This Document does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase, any investment and UK
Green Investment Bank plc does not arrange investments for/introduce parties as a result of sharing the information set out in this Document.
Registered Office: Quartermile 1, 15 Lauriston Place, Edinburgh EH3 9EP. Company Number SC424067.
UK Green Investment Bank is a company wholly owned by the UK Government and is not regulated by the Financial Services Authority.
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