The UK’s Green Investment Bank (GIB) has announced first close on a dedicated fund for offshore wind energy.
GIB has raised commitments of £463 million on its planned £1 billion fund to invest in operating offshore wind farms in the UK. It is the first fund raised by the bank and marks its first move into asset management and the first time it has managed private capital since its formation.
The initial investors include UK-based pension funds and a major sovereign wealth fund. GIB is investing £200 billion in the fund and says it will continue fundraising from other investors to reach its £1 billion target.
The fund is the world’s first fund dedicated to investments in offshore wind power generation and will be the largest renewables fund in the UK once fully subscribed. GIB has already transferred its investments in two operating assets into the fund – Rhyl Flats and Sheringham Shoal.
"The fund will create significant benefits for the UK by mobilising capital into the UK offshore wind sector from new, long-term investors seeking good, risk adjusted returns," said Shaun Kingsbury, CEO of GIB. "Attracting additional capital and creating a liquid market for operating assets is an important step in reducing the cost of offshore wind and supporting the continued growth of the sector.
"New investors will allow the original developers to sell down their stakes and use the proceeds to finance new renewable energy projects."
