Ireland Strategic Investment Fund November 2014
Key Components of Investment Mandate
1. Double Bottom Line – Investment Returns and Economic Impact 2. Co-Investment Opportunities in a recovering economy
2
National Treasury Management Agency (NTMA) •
NTMA is a commercial organisation providing a range of specialist financial and risk management services to the Government of Ireland
NTMA Funding & Debt Management (FDM)
NewERA
Strategic Banking Corporation Ireland (SBCI)
Ireland Strategic Investment Fund (ISIF) / NPRF
National Asset Management Agency (NAMA)
National Development Finance Agency (NDFA)
State Claims Agency (SCA)
•
Funding & Debt Management: Manages State borrowings in sovereign bond markets
•
NewERA: Co-ordinates State’s ownership of certain commercial semi-state firms
•
Strategic Banking Corporation of Ireland (SBCI): Sources low cost long term finance from multilateral finance providers and State resources and channels this to Irish SME borrowers
•
Ireland Strategic Investment Fund (ex NPRF): State pension fund, transitioning to focus on strategic investment
•
NAMA: Manages large real estate assets and development loans acquired from Irish banks
•
NDFA: Manages public private partnership projects, provision of financial advice on large capital expenditure by the State
•
SCA: Manages the State’s personal injury and property damage claims
3
NPRF: Journey Post Crisis •
• •
EU/IMF €85bn Programme of Financial Support €67.5bn from EU, ECB and IMF; €17.5bn from Ireland, of which €10bn from NPRF €50bn for Sovereign, €35bn for Banks
Announced intention to form the Ireland Strategic Investment Fund (ISIF)
June
2014
2013 Sept 2011
Nov
2010 2009 • Initial recapitalisation in €10.7bn from NPRF • Banking system in deep trouble • Flight of deposits
Government announcement that remainder of NPRF assets to be invested “Strategically”
New Fund New Mandate
€7BN ISIF formed by the passing of the NTMA Amendment Act, 2014
The ISIF Mandate: Double Bottom Line • Sovereign Development Fund:
Investing on a commercial basis To support economic activity, and Employment in Ireland
Fund Allocation 20% Lower Impact
80% High Impact
Economic Impact Framework - Key Concepts Deadweight •Benefits would have been achieved without ISIF investment
Displacement •Benefits achieved at expense of other domestic players
Additionality •Benefits would not have been achieved without the ISIF investment
5
The ISIF Mandate: Co-Investment Opportunities • Co-Investment is a key element of ISIF strategy • ISIF can be attractive partner for international investors
Commercial investor Flexible investment time horizon (can be very long or short term) Flexibility to invest across the capital structure Sovereign fund Independent governance Cornerstone investor, lead role in structuring / implementation / monitoring Link to key players in Irish business and financial system Govt Depts, IDA, Enterprise Ireland, SBCI, NewEra & commercial semi-states, NDFA and PPP projects, NAMA, pillar banks, private equity / venture capital community etc
6
Illustrative Investments / Sectors of Interest Infrastructure • Irish Water: • Multi billion Euro capex in regulated utility • Transportation • Ferry ports • Airports • Broadband • Data centres
Food / AgriSector
Energy Sector
Education
• Farming: • Production expansion post dairy quota system reform • Food processing: • Improve branding and position in value chain • Fisheries: • Aquamarine • Further processing • Forestry: • Improve exploitation of Irish forests very strong growing profile
• Sustainable cost efficient energy • Car fuel economy and emission improvement technologies • Wind Power
• Improvement of course content and delivery from primary through to third level • Improved efficiency of education provision
7
Illustrative Investments / Sectors of Interest
Real Estate • Housing • Urban Renewal • Tourism related assets • Advance factories and facilities for industry
Technology / Venture • Venture Funds: • Enhance growth and development of strong tech sector in Ireland
SME Sector • Equity: • China Ireland Technology Fund • Mezzanine • Credit • Term Loans • Working Capital
8
Tourism – ISIF Role / Interest in the Sector • Tourism covers a broad range of sectors:
Infrastructure Airports Roads Ferries
Real estate Hotels Holiday homes
Entertainment attractions Theme parks Sporting facilities
Enabling technologies Reservation and holiday / travel booking systems
9
Tourism – ISIF Role / Interest in the Sector • ISIF is open to considering tourism sector related investments • Key issues for consideration:
Projects MUST be COMMERCIAL (no soft money) Tourism projects tend to be relatively small with more localised benefits Avoid displacement Avoid deadweight
• Currently we are looking at a number of opportunities in the sector
10
Key Components of Investment Mandate
1. Double Bottom Line – Investment Returns and Economic Impact 2. Co-Investment Opportunities in a recovering economy
11
For further information, please contact : Michael Lee
[email protected] + 353 1 238 4937
