27/06/2013

UK Green Investment Bank Receives £800m Extra Funding

Business Secretary Vince Cable today confirmed that the UK Green Investment Bank (GIB) will get £800m additional funding for 2015/16.

Speaking at the GIB's first annual review event in London, he said this meant that the bank would be able to allocate £3.8bn until 2016 in its five priority sectors as part of the government's drive to promote green growth.

Mr Cable also told stakeholders that the GIB would be given the option to borrow up to £500m of this from the National Loans Fund (NLF) - a government lending fund. This would be an important step which would enable GIB to demonstrate a track record of making healthy profits from its investments in green infrastructure whilst borrowing at a commercial rate.

As outlined in its first annual report published this week, the GIB has already directly committed £635m to 11 transactions with a total value of £2.3bn.

Mr Cable said: "Against a backdrop of tough fiscal decisions being made by government, the £800m funding for 2015/16 and borrowing from the NLF is a clear signal to the markets that the GIB is central to the government's plans for green growth and it is there for the long term.

"The GIB is already mobilising £3 of private sector money for every £1 from GIB. This additional funding will allow it to continue growing its portfolio and making a strong green impact and demonstrating the profitability of investing in green projects."

(CD/JP)

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