The strategy for its transformation as the Sovereign Wealth Fund is being implemented by the Growth Fund, aiming to maximise public wealth by establishing a new specialised subsidiary that will invest in key economic sectors in Greece.
In particular, according to the announcement, the new investment fund will operate as a subsidiary of Growthfund, with independent governance, management and investment capabilities. Its mission will be to promote the development of the Greek economy for the benefit of citizens and the environment, focusing on mobilising additional private investment in Greece. The fund, which is estimated to start operating in 2025 with €303.5 million in capital, will come from the recent transfer back to the state of EYATH S.A. (Thessaloniki Water Supply and Sewerage Company) and EYDAP S.A. (Athens Water Supply and Sewerage Company). Alternative sources of funding will be considered in the future.
The investments of the new Fund will focus on strategic sectors for the country, strengthening Greece's position as a leader in the green transition and digitalisation. Investments will be made through minority equity stakes in companies and large infrastructure projects.
It is noted that Growthfund, following an international tender for the creation of the fund, has appointed BlackRock Financial Markets Advisory ("BlackRock FMA") as advisor to support the activities and processes involved in the establishment and operation of this new investment fund. BlackRock FMA was selected for its unique experience in similar projects around the world and its technical expertise.
BlackRock FMA has leading expertise in investment and asset management, risk management and technology and has extensive knowledge in advising institutional clients on capital markets issues. Growthfund will benefit from BlackRock FMA's successful track record in supporting similar national investment and growth funds around the world.
In line with the addition to Law 4389/2016 (Articles 203A-E) passed by the Greek Parliament on 31 July 2024, this initiative is aligned with the legal framework supporting strategic investments in Greece in the context of the national economic - development policy.
Growthfund's CEO, Gregory D. Dimitriadis, said. Through its new subsidiary, Growthfund will be a catalyst for growth with a national role, which it will develop to its full potential. By leveraging BlackRock FMA's expertise in setting up the subsidiary, we are confident that we will attract significant private investment and have a substantial impact on the Greek economy."
Matthias Wyrwoll, CEO of BlackRock FMA, said: "We are delighted to have been selected to advise Growthfund on this venture and to contribute to the establishment and success of this new investment fund dedicated to supporting key sectors of the Greek economy."
