Italy approves bill to set up $1.1 billion fund for strategic firms

<html xmlns=""><head><title>UPDATE 1-Italy approves bill to set up $1.1 billion fund for strategic firms</title></head><body>

Fund aims to ease procurement of critical raw materials

Can invest in listed non-financial companies, draft shows

Rome seeks at least 500 mln euros from private investors

Updates after government approval, adds details from draft

By Giuseppe Fonte and Angelo Amante

ROME, May 31 (Reuters) -Italy's cabinet on Wednesday approved a bill to create a fund to support domestic firms, the industry minister said in a statement, in a move aimed at shoring up strategic supply chains.

The upcoming national strategic fund for "Made in Italy" products will have an initial endowment of 1 billion euros ($1.10 billion) in state cash, the statement said, adding it would also aim to boost procurementof "critical raw materials."

A draft seen by Reuters showed that the new vehicle was alsoentitled to invest in domestic, listed firms not operating in the financial sector.

The scheme will aim to raise at least an additional 500 million euros from private investors, according to the document.

Government sources have previously told Reuters that the administration led by nationalist Prime Minister Giorgia Meloni is courting sovereign wealth funds (SWFs) of Saudi Arabia, Qatar, the United Arab Emirates, Azerbaijan and Norway to give the fund more firepower.

Industry Minister Adolfo Urso's project is part of a broader proposal from theright-wing administration aimed at supporting Italian business, focusing on the country's traditional products and industries like pasta, pottery and woodwork.

According to the draft, Prime Minister Giorgia Meloni plans to finance the 1-billion euro endowment through part of the resources originally earmarked for "Patrimonio Rilancio", a fund launched in 2021 to bolster companies hit by the pandemic.

Run by the state lender Cassa Depositi e Prestiti (CDP), the PatrimonioRilancio fund wasoriginally intended to provide some 40 billion euros of financing, but has so far invested just around 1 billion.

Once the bill is approved by parliament, the government will issue a decree defining howthe fund will work.

Italy's plan takes its cue from an initiative announced this month in France, where private equity firm InfraVia Capital Partners will launch a 2-billion euro fund dedicated to critical materials projects, a quarter of which will be funded by Paris.

Rome's announcement of the project this month triggered sceptical reactions from analysts and economists, who argued among other things that the fund risked duplicating CDP Equity, a CDP unit formed in 2011 and tasked with injecting capital into strategic assets.

($1 = 0.9084 euros)

Editing by Alison Williams and Deepa Babington


免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。