Macquarie offers pledges to seal Green Investment Bank purchase

Macquarie Group gives pledges to British government to clinch its takeover of the London-based Green Investment Bank.

Macquarie Group has been forced into making a series of pledges to the British government to clinch its takeover of the London-based Green Investment Bank.

Macquarie was chosen as the preferred bidder for the taxpayer-backed renewable energy lender last October. But the deal then came under threat after revelations by The Sunday Times in relation to Macquarie’s plans to break up the business.

Macquarie had taken steps to start stripping assets from the bank — even though it was yet to seal the takeover.

The revelations prompted two parliamentary debates and led to business secretary Greg Clark considering plans to pull the sale, or to float the bank. But officials at UK Government Investments, the Treasury arm that handles state investments, has pushed to ­secure the original deal with Macquarie.

To ease the government’s embarrassment, Macquarie promised to keep the Green ­Investment Bank’s headquarters in Edinburgh and create a fund that would safeguard some of its most valuable assets from quick disposals, according to sources involved in the transaction. The government could also retain a stake in the bank.

Banking sources say Macquarie is now just weeks away from clinching the £3.8 billion ($6.18bn) deal.

The Green Investment Bank, which is chaired by Lord Smith of Kelvin, was set up in 2012 by Sir Vince Cable to spur growth in the renewable energy industry.

Politicians in ­Edinburgh have sought assurances the bank’s portfolio will not be liquidated.

The business department said: “Any government decisions on the sale of the bank will be driven by what best achieves our objectives, including continued investment in the green economy and a sale that is in the best interests of the taxpayer.”

Macquarie declined to comment.

Sunday Times