Background information

The state-owned Ireland Strategic Investment Fund (ISIF) is to make €2 billion available under a Pandemic Stabilisation and Recovery Fund (PSRF), which will support medium and large enterprises in Ireland affected by COVID-19.

Funds will be invested on a commercial basis seeking an appropriate risk-adjusted return and economic impact from investments it makes. It will have flexibility to invest in a range of instruments, from equit to debt and hybrid instruments.

Content of measure

This will invest in large and medium-sized enterprises employing more than 250 employees or with annual turnover in excess of €50 million. Enterprises must be able to demonstrate that they were viable before the pandemic an that they can return to viability and contribute to the Irish economy.

ISIF may consider investing in enterprises below these levels if they are assessed to be of substantial scale and of significant importance at national or regional level.

No time horizon for deployment has been set – the PSRF will deploy funds as long as qualifying opportunities present themselves.

ISIF will always seek co-investment where possible. In particular, where existing investors have capital resources, ISIF will expect meaningful participation from them alongside any ISIF investment.

Use of measure

According to the Ireland Strategic Investment Fund (ISIF), in February 2021, it has allocated €2 billion for deployment from the PSRF to support businesses that have been impacted by the pandemic and to invest in their recovery phase.

Direct and indirect investments in pandemic-impacted businesses from May 2020 accounted for 90% of ISIF’s investments in 2020. Commitments include investments in Aer Lingus, daa, Finance Ireland and tourist accommodation provider, Staycity.

The Irish Times reported that the DAA secured €40 million of funds, while Finance Ireland raised €17 million, Aer Lingus, €150 million, and aparthotels company Staycity received €30 million of financing.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Larger corporations	Does not apply to citizens

Actors and funding

Actors	Funding
National government Company / Companies	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

No social partner involvement - the ISIF sovereign wealth fund is making resources available to invest in businesses during the pandemic.

Views and reactions

Not known.

Sources

• 02 May 2020: PSRF Guide (isif.ie)
• 29 May 2020: PSRF FAQ (isif.ie)
• 08 February 2021: Ireland Strategic Investment Fund publishes 2020 update (isif.ie)
• 08 February 2021: DAA, Finance Ireland, Aer Lingus tap Covid recovery fund (www.irishtimes.com)