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Green Investment Bank forerunner gets £100m boost

UK Green Investments has appointed two fund managers to operate and manage £100 million of investment, aimed at energy saving and carbon reduction schemes.

As a precursor to the UK Green Investment Bank, UKGI has committed up to £100 million to two specialist fund managers, Sustainable Development Capital (SDCL)and Equitix.

They will make and manage investments in non-domestic energy efficiency projects. These investments could range from energy performance contracts, to measures to reduce energy consumption in public and private sector buildings.

Equitix said the investments will be match-funded by leading institutional investors, maximising the money available to inject into suitable projects. It said the funding will include energy performance contracting and biomass-to-heat schemes.

Business Secretary Vince Cable said: “The appointment of two fund managers with £100 million to invest in the non-domestic energy efficiency infrastructure sector shows that we are making good progress. Projects the fund managers invest in will help to save energy and meet the government’s carbon reduction targets.”

Equitix specialises in private public partnerships including PFI and Local Improvement Finance Trust (LIFT) - a government initiative aimed at enabling new health care facilities to be built in the community - from bidding and closing through to construction and service provision.

It is partnered with Amey on the £2bn Sheffield Highways PFI scheme. The fund manager is also with Kier Project Investments, Galliford Try Investments and John Graham Holdings on the Alliance Community Partnerships, which was appointed by the South West Territory Programme Board and Scottish Futures Trust to provide over £500m of public sector infrastructure projects in South West Scotland.

Geoff Jackson, chief executive officer of Equitix, said: “Equitix are very pleased to be chosen to source, invest in and manage these investments on behalf of UKGI and there is a dedicated team in place to support UKGI’s non-domestic energy efficiency investment strategy.

“This area of investment is a good fit with our wider long term fund management philosophy; we see this appointment as a sign of confidence in the track record of our team and our ability to deliver for both our investors and the public sector as a whole.”

SDCL is a specialist financial and investment advisory firm which helps governments, financial institutions and corporates finance environmental and social infrastructure assets and services.

The UK GIB will aim to accelerate private sector investment in the UK’s transition to a green economy. Offshore wind power generation, waste processing and recycling, energy from waste generation, non-domestic energy efficiency and support for the Green Deal will be the first priority sectors for the UK GIB, subject to approval by the European Commission.

The GIB is expected to be fully operational later this year, subject to state aid approval. In the meantime, the government is paving the way for its establishment of by making investments, on commercial terms, in green infrastructure through the UK Green Investments team at BIS.

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