Edinburgh-based Green Investment Bank raises £460m for first offshore wind fund

Offshore wind farmThe Edinburgh-based UK Green Investment Bank has raised £463m of capital at first close, to be invested in UK offshore wind projects in the world’s first dedicated offshore wind fund. Investors include include UK pension funds and a sovereign wealth fund.

This is the first fund raised by the GIB group, a first move into asset management and the first time it has managed private capital since its formation.

The announcement coincides with the end of GIB’s financial year, during which it committed £723 million to 22 green energy projects across the UK in 2014/15. GIB has now backed 46 UK projects with a total value of almost £7 billion.

The UK Green Investment Bank plc (GIB) has announced that its FCA regulated subsidiary, UK Green Investment Bank Financial Services Limited (GIBFS), has reached first close on commitments of £463m on its planned £1bn fund to invest in operating offshore wind farms in the UK.

The offshore wind fund is an innovative, first-of-a-kind transaction. It is the world’s first fund dedicated to investments in offshore wind power generation and, once fully subscribed, will be the largest renewables fund in the UK. The fund has an expected life of 25 years, allowing a new class of long-term investor to enter the sector.

GIB has now transferred its investments in two operating assets into the fund, which will produce immediate cash yield for investors. They include:

  • Rhyl Flats. A 90 MW, 25 turbine wind farm operated by RWE Innogy UK off the coast of North Wales. It has been operational since December 2009. GIB has sold its full 24.95% equity stake in the project to the fund.
  • Sheringham Shoal. A 317 MW, 88 turbine wind farm operated by Statkraft and located in the Greater Wash area off the coast of Norfolk. It has been operational since October 2012. GIB has sold its full 20% equity stake in the project to the fund.

These two offshore wind farms are able to produce 1,290 GWh of renewable energy annually, enough to power 305,000 UK homes. The fund also has a strong pipeline of future investment opportunities.

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