The $15 billion National Reconstruction Fund will begin investing in growing Australia’s industrial capabilities to create “secure, well-paid jobs” of the future.
The Minister for Industry, Ed Husic, and the Finance Minister, Katy Gallagher, have published the National Reconstruction Fund Corporation’s Investment Mandate, which they say unlocks billions of dollars in investment finance to rebuild Australia’s competitiveness across the manufacturing value chain.
The Investment Mandate aims to lay out clear expectations for the corporation, including areas for investment across seven key priorities, while the board says it will make independent decisions to provide finance, including debt and equity, to Australian-based investments. Among the priority areas are renewables and low emission technologies, medical science, and resources.
The mandate directs the corporation to operate on a commercial, self-sufficient basis, including due diligence on investment decisions and the expectation of a return for the taxpayer. It also requires the corporation to target a rate of return of between two and three per cent above the five-year Australian government bond rate over the medium to long term.
Minister for Industry and Science, Ed Husic, said, “Signing off on the investment mandate means the NRF can get cracking on rebuilding our manufacturing capabilities and supply chain resilience.”
Martijn Wilder, chair of the National Reconstruction Fund Corporation, added, “The mandate provides the flexibility for the NRF Corporation to drive investment across the seven priority areas to transform the Australian economy, in line with the government’s commitment.
“It will also see the NRF Corporation work closely across government with other critical agencies such as the Net Zero Economy Agency, the CEFC and others to maximise our impact.”
You can read the investment mandate here, or get more information on the National Reconstruction Fund here.
