WARSAW: The Polish government will set up four investment funds with the target capitalization of PLN 6.5 billion to be managed by the state investments vehicle PIR, based on an agreement signed between PIR, state bank BGK and its investment unit TFI BGK.
The four funds will be dedicated to local government, infrastructure and enterprise investments, offering capital and debt financing to local authorities and Polish businesses. All funds will operate in the formula of closed-end, non-public assets funds (FIZAN).
The Polish enterprise investment fund will kick off with PLN 1.5 billion means, which will be invested in company stocks, convertible bonds or via mezzanine financing, mainly in the industrial sector. The two infrastructural funds, in turn, will offer project finance for investments in power, transport or telecom sectors. Each will have over PLN 2.2 billion at its disposal. Finally, the local investments fund will start off with PLN 600 million. The four funds to be managed by PIR add to two existing funds at TFI BGK: housing rental fund and foreign expansion fund (set up on Wednesday).