CHANCELLOR RISHI SUNAK has opened the new UK Infrastructure Bank today at its headquarters in Leeds.
The Bank will be tasked with accelerating investment in infrastructure projects that help to cut carbon emissions.
First announced in the Spending Review, the Bank will help to finance projects in clean energy, transport, digital, water and waste.
The UK Infrastructure Bank will have an initial £12 billion of capital to deploy. It will be able to also issue £10 billion of government guarantees to generate £40 billion of total investment.
The Bank’s £22 billion of financial capacity will consist of £5 billion of equity, £7 billion of debt, and £10 billion of guarantees.
It launches in an interim form and will scale up in capability and capacity over time.
From 17 June the Bank will be able to issue loans, equity, or guarantees to private projects. The Bank will start lending to local authorities later in the summer.
Working with local government and the private sector, the Bank will harness investment through financing tools including debt, equity, and guarantees.
Rishi Sunak today met the bank’s senior leadership including Chairperson, Chris Grigg, and hosted a roundtable with local infrastructure and business leaders.
The Chair of the UK Infrastructure Bank, Chris Grigg, said: “The new UK Infrastructure Bank will be a catalyst for investment to support regional economic growth and net zero ambitions. I look forward to building strong partnerships with project sponsors, institutions and local leaders.”
The opening of the Bank in Leeds was welcomed by local authority, council and business leaders. It joins other well-known organisations located in Leeds including the Bank of England and Channel 4.
As part of its opening today, the Bank published a framework document which sets out its operating principles and relationship with government.