UK GIB privatisation bill passes through parliament

The bill needed for the UK government to proceed with the privatisation of the UK Green Investment Bank plc (GIB) has passed through parliament.

"This is an important milestone in progressing towards GIB’s capital raising, change of ownership and transfer into the private sector. That process is now underway," GIB chair Lord Smith of Kelvin said in a statement.

The legislation was on Tuesday approved by the House of Lords, which completed its parliamentary passage. It now only needs to receive Royal Assent.

"One important outcome of the Parliamentary process is that the UK Government has authorised GIB to create a ‘Special Share’ to protect GIB’s green mission," the GIB chair added.

Last month the bank said it was making progress with the special share creation. A company to hold the share has been incorporated and an independent nominations committee has been identified to search for permanent trustees of the special shareholder.

The holder of the special share will have special voting powers to ensure that GIB continues to invest exclusively in accordance with its green purposes.

GIB was launched in 2012 to support investment in UK green infrastructure. The for-profit institution is now wholly owned by the UK government.

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