GIB shows community spirit
New £200m fund for onshore wind and small hydro in UK
The UK Green Investment Bank, global investment firm KKR, and investment manager Temporis Capital today announced a new £200m lending programme for community-scale renewable energy projects in the UK.
It is the first time that GIB has supported community-scale renewables and the first investment by KKR in UK renewables.
GIB and KKR will each provide up to £100m to the programme, which will be managed by Temporis Capital.
GIB gained approval from the European Commission in May 2014 to expand its investment mandate to include community-scale renewables, mainly small-scale hydro and onshore wind projects, in response to a funding gap in the market.
Temporis expects the first project to benefit from the new facility will be in Scotland and for a loan agreement to be signed shortly.
GIB chief executive Shaun Kingsbury said: “Many well-structured community-scale projects have not been able to get off the ground because of a lack of long-term finance in the market.
“These small-scale projects can make a meaningful contribution to the UK’s green economy and I am pleased that we, along with our partners KKR and Temporis Capital, will be able to provide this funding to projects which might otherwise have been locked out of the market.”
KKR has invested in renewable energy across the world, including the US, Mexico, Australia, France, Italy, Spain, Portugal, and South Africa.
KKR co-head of credit Nat Zilkha said: “The investment builds on KKR’s view that renewable power is a critical part of the energy mix and that non-bank lending can provide capital to projects with clear tangible benefits for local communities.
“We look forward to providing more financing to companies and infrastructure projects in the UK.”
Image: onshore wind as well as small hydro to benefit from fund (sxc)