Abu Dhabi government-owned Mubadala Investment Company intends to invest 1 billion euros ($ 1.08 billion) in a new investment fund supported by the French government that aims to help companies there.
According to Reuters, French Finance Minister Bruno Lemerre said that both Mubadala and the French government-backed investment bank BPI France will pledge one billion euros to the fund to be launched next month. He added that additional commitments from investment institutions such as insurance companies would increase the total volume of investments to four billion.
"The first foreign sovereign investment fund that will invest in the French fund is the Abu Dhabi fund," Lemerre told reporters during a visit to Abu Dhabi.
"This sends a strong signal that the Abu Dhabi Fund will invest 1 billion euros.
BBI France had said that it aspires in the end to raise up to ten billion euros for the fund that will be used to support the capital of French companies facing campaigns from active investors or adjustments to their business models or the base of their shareholders. p>
BPI France said in its promotional offer to the fund to external investors that it would employ the capital in approximately 15 companies within about ten years.
Mubadala said in a statement that it saw attractive investment opportunities in the French market, and indicated that the fund would invest in companies that achieve attractive returns.
