The $15 billion National Reconstruction Fund is open for business, and can begin investing across seven key areas outlined in the newly published NRF Corporation Investment Mandate.
The NRF opening follows the launch of the $392m Industry Growth Program.
Industry minister Ed Husic and finance minister Katy Gallagher published the NRF Corporation’s Investment Mandate, setting out clear expectations for the corporation, directing it to operate on a commercial, self-sufficient basis, including due diligence on investment decisions and the expectation of a return for the taxpayer.
There are seven key priority areas for investment: renewables and low emission technologies; medical science; transport; value-add in agriculture, forestry and fisheries; value-add in resources; defence capabilities and enabling technologies.
The mandate requires the NRF Corporation to target a 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 board will make independent decisions to provide finance, including debt and equity, to Australian-based investments in seven priority areas of the Australian economy.
“Signing off on the investment mandate means the NRF can get cracking on rebuilding our manufacturing capabilities and supply chain resilience,” said Husic.
National Reconstruction Fund Corporation chair Martijn Wilder said the mandate would provide flexibility for the NRF Corporation to drive investment across the seven priority areas.
“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,” said Wilder.
The full investment mandate can be read here.
