The UK Green Investment Bank (GIB) unveiled plans to raise a £1bn fund to invest in offshore wind farms in the UK and reported that is has invested £668m in 18 new green projects in the year to end-March.
During the period, the bank more than doubled the number of green projects it backed in its first year and took its total capital commitments to £1.3bn.
GIB said that it is now the most active investor in the UK’s green economy, which received total investments of £2.5bn in the fiscal year.
The bank said that it plans to build a portfolio of investments that will reduce the UK’s annual CO2e emissions by 3.5m tonnes each year, or the equivalent of taking 1.6m cars off the road, and produce 12.8 TWh of renewable energy as well as avoid 1.3m tonnes of waste going to landfill.
GIB has co-invested with more than 70 domestic and international private investors and has mobilised around £3 of private capital for every £1 it invests.
The bank also said that 88 per cent of its investments are in construction.
GIB has incurred a loss of £5.7m in the current year, which is in line with expectations. It said it is expecting to reach sustained profitability once its current portfolio is built and operating.
In the full year report, GIB said that it is planning to launch a £1bn fund which will buy equity stakes in operational offshore wind projects in the UK.
Last month the bank secured permission State Aid approval from the European Commission to promote and manage funds and other co-investment structures.
The fund will be managed by GIB’s subsidiary which is currently regulated by the Financial Conduct Authority (FCA) and will be seeking permission from the FCA to become a regulated fund manager.
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