The new UK Infrastructure Bank has officially opened for business. The new bank, which is headquartered in Leeds, will be tasked with accelerating investment into ambitious infrastructure projects, cutting emissions and levelling up every part of the UK.
The establishment of the bank comes in the wake of the pandemic but is expected to result in a long-lasting public institution helping to drive growth across the UK.
The bank is to have an initial financial capacity of £22bn made up of £12bn in capital and £10bn in government guarantees. This is expected to unlock more than £40 billion of overall investment in local government lending and across the private sector. The bank will initially provide funding for the private sector and will start lending to local authorities later in the summer.
HM Treasury and the UK Infrastructure Bank have entered into a Keep Well Agreement to ensure that the Bank has sufficient funds to be able to meet its payment obligations in full as they fall due.
The new Chair of the UK Infrastructure Bank said:
'The new UK Infrastructure Bank is open for business. I am delighted to be leading this institution, which 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.'