Dark
Light

Ireland’s ISDF: Crowding in Transition Finance with Power

1 min read
65 views

TLDR:
– The €15 billion ($16.1 billion) Ireland Strategic Investment Fund (ISIF) is investing in “climate positive” projects to support Ireland’s transition to a net-zero economy.
– ISIF has committed €1 billion to climate projects over a five-year period, investing over €600 million already.
– The fund aims to attract co-investment for every €1 million invested and has so far committed €6.5 billion across 188 investments, unlocking €10.2 billion of co-investment commitments.
– ISIF invests in a diverse range of sectors and uses a portfolio approach to achieve risk diversification.
– The fund can invest at any point in the capital structure and offers flexibility in financing options.
– ISIF considers the economic impact and additionality of every investment, avoiding sectors already served by private investors.
– ISIF’s investments have helped Irish companies expand to international markets, promoting economic growth in Ireland.

The €15 billion ($16.1 billion) Ireland Strategic Investment Fund (ISIF) is playing a vital role in financing Ireland’s transition to a net-zero carbon economy. By investing in “climate positive” projects outlined in the government’s Climate Action Plan, ISIF is both attracting additional investment and supporting the country’s long-term transition.

Since 2018, ISIF has committed €1 billion to climate projects over a five-year period, with over €600 million already invested. The fund aims to attract co-investment for every €1 million invested, and so far, it has committed €6.5 billion across 188 investments, unlocking €10.2 billion of co-investment commitments.

ISIF invests in sustainable infrastructure, new technologies, and business models that support Ireland’s transition to a net-zero economy. Sectors and companies involved in the production of fossil fuels are excluded from ISIF’s investment strategy.

The fund’s investment approach is diverse and flexible. It manages a portfolio of Irish businesses, spanning growth equity, private equity, and private credit. Investments are split between fund and direct investments, with around 65% going to fund investments.

ISIF also has the flexibility to invest at any point in the capital structure, offering various financing options to support companies at different stages of growth. This includes providing debt, equity, mezzanine finance, hybrid debt/equity instruments, venture capital, growth capital, and private equity.

ISIF’s investments focus on economic additionality, ensuring that they create benefits to gross value added and avoid simply substituting existing economic activity. The fund looks for opportunities in sectors and areas not already served by private investors.

The impact of ISIF’s investments can be seen in the growth of Irish companies in international markets. By continuing to back these companies and providing access to funding through co-investment partnerships, ISIF is helping them achieve their growth ambitions over the medium and long term.

Overall, ISIF’s investment strategy is supporting Ireland’s transition to a net-zero carbon economy while driving economic growth and employment in the country.

Previous Story

Edgartown man’s 8-year sentence for bank heist shocks Martha’s Vineyard.

Next Story

Indian fintech boom: $20 billion industry predicted by 2030, study reveals

Latest from News