UK Infrastructure Bank

The UK Infrastructure Bank (UKIB) is a government-owned policy bank launched in June 2021, headquartered in Wilmslow, UK. Its core mission is to accelerate investment in critical infrastructure projects across the United Kingdom, addressing market failures and crowding in private capital. The bank focuses on sectors vital for the UK's transition to a net-zero economy and for fostering regional economic growth, including clean energy, transport, digital, water, and waste. UKIB aims to support projects that might struggle to attract sufficient private finance alone, thereby de-risking investments and attracting further capital into the sector.

UKIB was established with a substantial initial capitalisation of £22 billion, comprising £12 billion for direct lending and guarantees, and £10 billion for equity investments. This significant financial backing enables the bank to provide a range of financial instruments, including debt, equity, and guarantees, tailored to the specific needs of large-scale infrastructure projects. The bank's strategy is not to replace private finance but to co-invest alongside it, mitigating risks and making commercially viable projects more attractive to the private sector. It also partners with local authorities to support their infrastructure ambitions, providing flexible financial solutions.

UKIB targets projects that deliver significant economic, social, and environmental benefits, particularly those contributing to climate action and leveling up the UK. While specific deal sizes vary, the bank typically participates in substantial transactions. For instance, it has supported projects such as a £200 million debt facility for a large battery storage system and a £100 million investment in a gigafactory, demonstrating its capacity for significant capital deployment. Its investments are designed to unlock further private sector funding, thereby amplifying its impact on the UK's infrastructure landscape and contributing to the country's long-term economic resilience and sustainability goals.