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UK GIBFS raises £355m for offshore wind power development

CTBR Staff Writer Published 14 October 2015

UK Green Investment Bank Financial Services (GIBFS) has raised close to £355m for its offshore wind fund, bringing its committed capital to £818m.


The fund that is nearing GIBFS £1bn target is the largest renewable energy fund in the UK.

The investors in the second fundraising round include Swedish life insurance and pension company AMF Pensionsförsäkring (AMF) and Strathclyde Pension Fund.

Said to be the first in the world for dedicated investments in offshore wind power, the fund raised £463m in its initial closing earlier this year.

GIBFS fund managing director Karl Smith said: "This second successful round of fundraising highlights the growing confidence that home-grown and international investors have in well-developed and well-managed offshore wind assets in the UK.

"We are in advanced discussions with other potential investors and progressing quickly towards final close and reaching our £1bn target."

The fund also acquired a 10% stake in 576MW Gwynt y Môr offshore wind farm from GIB which is operated by RWE Innogy UK.

Upon completion of Gwynt y Môr acquisition, more than half of the fund's capital will be invested in income-generating assets.

Besides Gwynt y Môr offshore wind farm, the fund also owns 90MW Rhyl Flats, also operated by RWE Innogy UK, and 317MW Sheringham Shoa offshore wind farm operated by Statkraft.

GIB sold 24.95% and 20% equity stake in Rhyl Flats and Sheringham Shoa projects respectively to the fund.

The three projects will generate close to 2,980GWh of renewable energy that will be enough to power more than 700,000 homes or all the homes in Northern Ireland every year.

UK Energy and Climate Change Secretary Amber Rudd said: "offshore wind has been a UK success story and I welcome this long-term, private sector involvement in what is now the largest renewable energy fund in the UK.

"This demonstrates how we are open for business and the best place in the world to invest in offshore wind."

Image: GIBFS owns three offshore wind projects in UK. Photo: courtesy of UK Green Investment Bank plc.