In response to the first part of the Deputy's question, as indicated, the proceeds of the sale of the State's shareholding in Aer Lingus have been used to establish the Connectivity Fund which is managed by the Ireland Strategic Investment Fund (ISIF). The Connectivity Fund is being invested on a commercial basis as a sub portfolio of the ISIF fund, and consistent with the overall ISIF double bottom line mandate; i.e. investing for both commercial return and economic impact.
The ISIF have advised me that it has completed four investments under the Connectivity Fund, namely:
- A $28 million co-investment in Aqua Comms DAC, a company that has developed fibre optic cables linking the USA, Ireland (Killala, Mayo) and the UK.
- A €35 million investment as a strategic domestic partner for daa plc long-term bond issuance, supporting construction of a new runway at Dublin Airport.
- Provision of a long term €14 million debt facility to finance a runway resurfacing project at Shannon Airport - a crucial regional and national infrastructure asset. This debt facility was signed in early 2017 and the runway resurfacing project has been completed on time and within budget.
- An €18 million Junior Debt facility to support the relocation of the Port of Cork from Tivoli to Ringaskiddy. The ISIF debt facility was provided alongside senior debt from Allied Irish Banks and the European Investment Bank and was structured to ensure certainty of funding for the Port Company. It also has tailored flexibility to meet the requirements of this nationally and regionally significant project.
These investments bring the total deployed under the Connectivity Fund to over €90 million.
In relation to the second part of the Deputy's question, the ISIF has established the Pandemic Stabilisation and Recovery Fund to support medium and large enterprises in Ireland affected by Covid-19. In accordance with ISIF's statutory mandate any investments by this Fund must be on a commercial basis seeking an appropriate risk-adjusted return and economic impact from investments made. In addition, the Government is providing extensive supports to small, medium and large businesses impacted by the pandemic, including supports such as the Employment Wage Subsidy Scheme, and tax deferrals.
