Monday 9 January 2017

GIB assets risk being sold off after privatisation

GIB assets risk being sold off after privatisation

The Green Investment Bank's (GIB) assets risk being sold off after the state-owned company is privatised.

According to reports, Australian bank Macquarie is gearing up to sell some of the bank's key assets once it secures the £2 billion deal to buy it from the UK government.

The majority of these assets are whole ownerships or partial stakes in wind farms and biomass facilities.

Reports claim many have called for the privatisation of the state-owned lender to be halted amid concerns surrounding the intentions of the buyer.

Lord Barker of Battle, former Conservative Energy Minister, has reportedly written a letter to the Prime Minister, asking her to ensure GIB remains in public ownership under The Department of Business, Energy and Industrial Strategy (BEIS).

Reports also claim a number of jobs at the GIB are likely to be cut following the sale.

The GIB was created five years ago and has since invested more then £2.7 billion in a range of renewable projects, including wind farms, waste management facilities, power plants and energy efficient street lighting.

The government will retain a 'golden share' of the company to ensure its direction doesn't change excessively but it is unclear whether this will be enough to block the potential sale of assets.

ELN contacted Macquarie for a comment regarding its intentions but the company declined to comment.

Written by

Bruna Pinhoni

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