SDCL Takes UK Govt to Court Over Naming Macquarie Preferred GIB Bidder

Sustainable Development Capital (SDCL), a UK-based specialist investment banking and asset management company, has initiated a judicial review of the UK government’s decision to name Australian investment bank Macquarie preferred bidder for the Green Investment Bank (GIB). 

SDCL, one of the bidders in the GIB sale, claims that Macquarie being named the preferred bidder was not compliant with the criteria originally set out by the government.

The UK government launched the GIB sale on 3 March 2016, with the Australian investor provisionally awarded the deal in October last year. The final sale agreement was expected to have been announced with the first days of 2017.

“The fact that no deal was completed within the targeted timetable attests to the fact that the preferred bid was neither deliverable within the time frame nor acceptable,” The Guardian cited SDCL as stating.

Also, a few days ago reports emerged saying the government’s deal with Macquarie is being revised after the concerns were raised within the UK’s political sphere about assigning the GIB to Macquarie, suggesting the Australian bank could sell some of the assets after it takes over the GIB.

In line with this, the government might retain a stake in some of the GIB’s assets, according to Sky News.

Meanwhile, in January the GIB Offshore Wind Fund passed its initial GBP 1 billion target with its sixth UK asset acquisition, a 44% stake in the 270MW Lincs offshore wind farm.

Since being established in 2012, GIB has helped mobilise a total of GBP 10.6 billion of investment into almost 70 projects covering sectors including offshore wind, energy efficiency and waste and bio energy.