The Spanish Development Financing Company, COFIDES, S.A., S.M.E. and the Omani sovereign fund the State General Reserve Fund (SGRF) have begun the selection process in order to appoint the manager of the venture capital fund created by both entities.
This is a close-ended initiative, in which the SGRF and COFIDES are exclusive investors (aside from the commitment of the manager selected) with an amount of 200 million euro. It will therefore involve an equal participation of Omani investment and of the Spanish public sector of 100 million euro. COFIDES will contribute 1 million euro from its own resources and 99 million euro from the Funds for Foreign Investment F.C.P.J. (FIEX), which COFIDES exclusively manages on behalf of the Secretary of State for Trade, assigned to the Ministry of Economy, Industry and Competitiveness.
This fund will promote temporary and minority investments in Spanish mid-cap companies or with shareholders who are domiciled in Spain, with international expansion strategies. The main interest geographical areas of the fund will preferably be Oman, countries of the Gulf Cooperation Council, East Africa (especially Tanzania, Kenya, Mozambique, Uganda and Rwanda), South Asia, (with special focus on India) Southeast Asia (Indonesia, Malaysia and Vietnam) and Latin America, although it may also finance projects in other countries.
Special interest industries of the fund will be construction material, manufacturing, mining, tourism, logistics, healthcare, infrastructure, energy and agribusiness.
The fund will allow Oman to benefit from the experience and technological knowledge of Spanish companies through the creation of employment, technology transfer and investment profitability. In addition, Spanish companies will be able to avail of a new financing instrument in order to encourage their international expansion abroad, the consolidation and growth in our country of the parent company and at the same time to contribute to the development of the countries where they are investing.
COFIDES will also, throughout the entire process of selection and subsequent development, contribute, all its experience and national leadership in the management of direct investment abroad in the last thirty years partnering with Spanish companies in projects in more than 80 countries. COFIDES emphasises the cutting-edge nature of this type of agreement between a sovereign fund and a Spanish State and private-owned company.
The State General Reserve Fund (SGRF) was set up by Royal Decree 1/80 in 1980. It strives to achieve sustainable long-term benefits from the income generated from oil and gas, and which entail a surplus to the budgetary needs of the State.
On behalf of the Government of Oman, the SGRF manages the reserves under its responsibility in order to attain the best possible long-term benefits with acceptable risks, by means of investment in a diversified portfolio of asset types in more than 40 countries around the world.
COFIDES is a combined private-public concern, which since 1988 has provided financial support to Spanish enterprises abroad. COFIDES manages the FIEX and FONPYME funds on behalf of the State Secretariat for Trade, within The Ministry of Economy, Industry and Competitiveness. The stockholders include the Bank of Bilbao Vizcaya Argentaria (BBVA), Santander Bank, Popular Bank, Sabadell Bank and CAF (Development Bank of Latin America).
Entities interested in sharing and participating in this project can avail of the relevant information on the Public Sector Contractor Platform (https://contrataciondelestado.es/ (File: GestorFondo2018).
For more information, please consult the websites of COFIDES www.cofides.es and the SGRF: www.sgrf.gov.om