National Reconstruction fund investment mandate released

The investment mandate for the National Reconstruction Fund, the federal government’s $15 billion effort to invest in and grow seven sectors within manufacturing, has been published.

A joint statement from industry minister Ed Husic and finance minister Katy Gallagher on Thursday says the mandate includes areas of investment across those seven areas, and directs the independent NRF Corporation to operate on a commercial, self-sufficient basis, setting a targeted rate of return “of between 2 and 3 per cent above the five-year Australian government bond rate over the medium to long term.”

The NRF will provide finance in the form of loans, equity and guarantees, and is modelled on the Clean Energy Finance Corporation.

“Signing off on the investment mandate means the NRF can get cracking on rebuilding our manufacturing capabilities and supply chain resilience,” said Husic.

“Making things here, shipping them everywhere.”

The release follows the official start of the Industry Growth Program for startups and SMEs, which began accepting applications for grants between $50,000 and $5 million this week.

The NRF Corporation’s board – chaired by lawyer, clean energy investor and and Founding Director of the Clean Energy Finance Corporation Martijn Wilder – was announced in August.

Its seven priority sectors are renewables and low emission technologies; medical science; transport; value-add in agriculture, forestry and fisheries; value-add in resources; defence capabilities and enabling technologies.

Targeted financing levels by the Corporation “over the medium to long term” are given as:

(a) renewables and low emission technologies—up to $3 billion;

(b) medical manufacturing—$1.5 billion;

(d) critical technologies in the national interest—$1 billion;

(e) advanced manufacturing—$1 billion;

(f) agriculture, forestry, fisheries, food and fibre—$500 million.

The federal government began its search for an NRF Corporation CEO in October.

The mandate can be read here.

More to come…

Picture: credit www.industry.gov.au

Further reading

Government on the hunt for a CEO of the National Reconstruction Fund