$15bn National Reconstruction Fund opens for business

The Australian government’s $15 billion National Reconstruction Fund can now start investing in growing Australia’s industrial capabilities, says the Department of Industry. The Minister for Industry, Ed Husic, and the Finance Minister, Katy Gallagher, have published the National Reconstruction Fund Corporation’s Investment Mandate, unlocking what they terms as billions of dollars in investment finance to rebuild Australia’s competitiveness across the manufacturing value chain.

The Investment Mandate sets out the government’s expectations for the NRF Corporation, including areas for investment across seven key priorities:

• renewables and low emission technologies
• medical science
• transport
• value-add in agriculture, forestry and fisheries
• value-add in resources
• defence capabilities
• enabling technologies.

It also directs the NRF Corporation to operate on a commercial, self-sufficient basis, including due diligence on investment decisions and the expectation of a return for the taxpayer.

“Signing off on the investment mandate means the NRF can get cracking on rebuilding our manufacturing capabilities and supply chain resilience,” said Minister for Industry and Science Ed Husic. “Making things here, shipping them everywhere. This … comes in the same week as we officially start our $392 million Industry Growth Program to help scale up small businesses.”

The mandate requires the 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 signing of this mandate is a significant milestone,” said Martijn Wilder, Chair of the National reconstruction Fund Corporation. “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.”

The NRF Corporation is an independent body, governed by a Board with significant expertise in a range of sectors.

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.

To read the investment mandate, visit https://www.legislation.gov.au/Details/F2023L01564.