Ireland is creating a €2 billion ($2.2 billion) portfolio within its sovereign wealth fund to support medium and large businesses affected by the coronavirus.
The Pandemic Stabilization and Recovery Fund will be made available through the €10.8 billion Irish Strategic Investment Fund, Dublin, following an announcement by the country's minister for finance and public expenditure and reform, Paschal Donohoe.
The new fund will invest in large and medium firms with more than 250 employees or with an annual turnover of more than €50 million. Businesses not meeting the criteria may also be considered by ISIF for investment if they are of substantial scale and significant importance at a national or regional level, said a notice on ISIF's website. Businesses must have been commercially viable prior to the onset of the coronavirus pandemic. It must also be shown that firms can return to viability and contribute to the Irish economy, a document on ISIF's website said.
"Investments will need to yield a commercial and economic impact return in line with ISIF's statutory requirements," the document said.
The assets will be made available through ISIF's €7.9 billion discretionary portfolio, according to the document.
“This capital will be deployed from existing ISIF resources,” a spokesman for ISIF said. “ISIF will manage PSRF investments internally in line with existing arrangements and will add to its existing internal resources as required. It is inviting applications from potential investees immediately.”
Investments by the PSRF can be made across the capital structure, in equity, debt and hybrid instruments.
More information is available on the ISIF website.
