The UK government’s new national infrastructure bank has backed an Octopus Investments-managed fund.
The UK Infrastructure Bank (UKIB) plans to commit up to £100m (€118.1m) – on a match-funding basis – to the Octopus Sustainable Infrastructure Fund (OSIF) to help unlock between £100m to £300m of private capital.
UKIB, which worked with Octopus Investments to create OSIF, said the fund will target new infrastructure projects vital to helping the UK meet its net-zero targets.
OSIF will provide growth capital to companies looking to roll out and support sustainable infrastructure projects like battery storage and electric vehicle charging.
John Flint, the CEO of the UK Infrastructure Bank, said: “The UK Infrastructure Bank was set up to solve the most important problems we face today, in partnership.
“This investment, which is fully aligned with our mandate, could unlock over £100m of private funding into new green industries and help people across the UK to benefit from innovation in their local area.”
UKIB was announced as part of the government’s national infrastructure strategy in 2020 and was launched in June last year. The bank aims to provide £22bn of infrastructure finance to tackle climate change and support regional and local economic growth across the UK.
The latest transaction is the sixth deal for the bank.
Robert Skinner, the head of alternative investments at Octopus Investments, part of Octopus Group, said: “We are incredibly fortunate to have the support of the UK Infrastructure Bank in seeking to unlock this much-needed funding. Its commitment is an important starting gun.
“There is now a tremendous opportunity for institutional investors to align their capital with the UK’s net-zero goals, supporting job creation, powering economic growth, and bringing the next generation of infrastructure to every corner of the country, while generating the necessary financial returns.”
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