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Australian Clean Energy Bank Profitable Before Possible Closing

Clean Energy Finance Corp., the Australian green development bank earmarked for closing by newly-elected Prime Minister Tony Abbott, is making a profit and prodding commercial banks to lend, according to its chief executive officer.

“We’re operating profitably already, with our contracted investments expected to earn an average return of around 7 percent,” which is above the bank’s capital cost of about 3 percent, Oliver Yates, CEO of the bank founded less than four months ago by the previous government, told delegates at an Oct. 14 conference in London. He declined to comment on Abbott’s plan to close CEFC, citing public-service rules.