Three shortlisted in Green Bank auction

Final bids for the lender, which the UK government hopes to value at more than £4bn, are due end of July.

The UK’s Green Investment Bank has shortlisted three teams in anticipation of a final bid deadline set at 27 July, according to people with knowledge of the matter.

The selected consortia, which submitted first-round offers on 27 April, include a tie-up between New York-headquartered KKR and UK renewables investment manager Temporis Capital, as well as team comprising London-based Sustainable Development Capital, the Pension Protection Fund, General Electric, US insurer John Hancock and Japan’s Mitsui, sources told Infrastructure Investor.

Entities belonging to Australia’s Macquarie Group are also understood to have been shortlisted.

The GIB, KKR, PPF and Macquarie declined to comment. The other firms cited above couldn’t be reached for comment before press time.

The UK government hopes to sell at least 75 percent of the GIB, according to sources.

The bank so far has deployed around £2.6 billion ($3.7 billion; €3.4 billion), which accounting for recycled capital has generated a portfolio of about £2 billion. On top of existing assets, new shareholders have to commit to funding the GIB for at least three years, on which basis the government hopes to value the lender at more than £4 billion through the transaction.

The sale kicked off in March, a few weeks after the government announced the creation of a special “golden” share giving it the right to veto any of the lender's investments judged unfit to its green mandate.