Compañía Española de Financiación del Desarrollo, COFIDES, S.A., S.M.E., and Oman Investment Authority (OIA) have extended their cooperation through a new joint fund of around €100 million. With this expansion, COFIDES and OIA will have made available to Spanish companies €300 m.
Both Oman Investment Authority, the sovereign wealth fund of Oman, and COFIDES will each increase their contribution. The fund will be available to finance the Spanish companies with international expansion plans and to attract them towards Oman and its influential markets.
His Excellency Abdulsalam Al Murshidi, President of Oman Investment Authority, and COFIDES Chairman, José Luis Curbelo, signed an agreement to create the Spain Oman Private Equity Fund (SOPEF) II. After the successful achievements of the Spain Oman Private Equity Fund I, which is almost fully invested, COFIDES and OIA thereby decided to establish another fund, which represents another strategic partnership with the aim of achieving profitable returns through private equity investments.
The Spain Oman Private Equity Fund (SOPEF I) is a private equity fund created in 2018. the fund is managed by the renowned MCH Private Equity Investments, which operates in the Spanish middle market. MCH's deep understanding of the financial markets, risk management, and investment strategies will be instrumental in ensuring the optimal allocation of resources within the fund.
The fund is focused on supporting, through minority acquisition, leading Spanish companies in their respective business niches and with great international potential. SOPEF l has invested in 11 Spanish companies in various sectors, including: agri-food, renewal energy, technology, industry, healthcare, and lifestyle.
The fund will allow Oman to benefit from the experience and technological know-how of Spanish companies through technology transfer and investment profitability. This was highlighted by SOPEF I achieving a net IRR of around 13.8% so far, which contributed towards the profitability of OIA’s Future Generations Fund. It will also provide Spanish companies with a new financing instrument to encourage their expansion abroad, the consolidation and growth of the parent company, and, at the same time, contribute to the development of Oman and Spain.
Simultaneously, the fund will offer Spanish companies a valuable opportunity to support their expansion strategies overseas. By accessing this fund, Spanish enterprises can secure the necessary capital and resources to establish or strengthen their international foothold. This financial support will not only fuel the growth and consolidation of the parent companies but also enable them to leverage their expertise and knowledge to drive innovation and development in Oman.
José Luis Curbelo stressed the cooperation between COFIDES and the Oman Investment Authority. “At COFIDES, we are very satisfied with the success and effective development of SOPEF I, which has become an unparalleled instrument to boost the competitiveness of both countries. We hope this new fund will continue to help Spanish companies grow and consolidate their position in the international market”.
Speaking on this agreement, His Excellency Abdulsalam Al Murshid, President of Oman Investment Authority, said, “The first fund with COFIDES demonstrated several areas of success and achievements. Indeed, the performance of the first fund is one of the key drivers for extending the commitment to the second fund. In OIA, we are managing several Joint Ventures that have capitalized on the bilateral friendships and strategic partnerships we have with different countries. Such steps come in the spirit of the Sultanate of Oman’s economic diplomacy efforts, which represent the country’s vision in establishing unified mutually beneficial partnerships.”
The agreement was signed in Madrid in the presence of the Ambassador of the Sultanate of Oman to Spain, His Excellency Omar Alkathiri.
ABOUT COFIDES
COFIDES is a state-owned enterprise specialized in the management of State funds that provide medium- and long-term financing for private investments linked to different public policy purposes. COFIDES directly manages funds aimed at supporting the internationalization of Spanish firms, strengthening the solvency of companies severely affected by the COVID-19 pandemic, to attract foreign direct investment into Spain through co-investment deals and to contribute to the growth of the impact investment ecosystem in Spain. In addition, COFIDES supports the management of the financial cooperation portfolio of the Spanish Agency for International Development Cooperation, promoting sustainable development in emerging economies and developing countries. In the ownership structure of the Company, the Spanish State holds 53% of the equity. The remaining 47% is held by Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).
ABOUT OMAN INVESTMENT AUTHORITY
Oman Investment Authority (OIA) is the investment arm of the Sultanate entrusted with managing, investing, and developing the nation's national and international assets. With a diverse investment portfolio both locally and globally, OIA invests in over 50 countries, targeting various sectors, including food, energy, logistics, ICT, services, finance and investment, food security, tourism, mining, industry, and aviation. OIA is committed to driving sustainable economic growth and contributing to the well-being of Oman's people while also supporting the Sultanate's vision of becoming a leading investment destination in the region.
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