The Universities Superannuation Scheme (USS), a pension scheme that can trace its roots over a hundred years, will help the Australian lender pay for future funding commitments.
The book value of the investments made by the GIB is £1bn, with commitments made to draw down a further £900m. And according to reports in The Sunday Times, the USS will fund the future commitments of £700m per year for the next three years that are a condition of the sale.
The sale of the GIB was kicked off in March. Although at the time, the understanding was that a "majority" shareholding was for sale, a decision was subsequently taken to sell the entire share capital of GIB – a decision that frustrated Virgin founder Sir Richard Branson among others.
Macquarie Bank was one of two parties shortlisted to provide binding bids. The other party is understood to be Sustainable Development Capital, a consortium backed by the Pension Protection Fund, Japan’s Mitsui, General Electric and insurer John Hancock.