Applications for the first two investment programs of the Capitalization and Resilience Fund (FdCR), managed by Banco Português de Fomento (BPF), with a global allocation of 650 million euros, are open, the institution announced today.
In a statement, the BPF adds that the new financial instruments – the Strategic Recapitalization Program and the Consolidar Program – “are intended to support the solvency and financial resilience of strategic national companies and productive investment in business growth and consolidation”.
With an allocation of 250 million euros, the Consolidar Program "aims to promote investment in SMEs [small and medium-sized enterprises] and mid caps impacted by the Covid-19 pandemic, but economically viable and with potential for recovery, through the subscription of venture capital funds, in co-investment with private investors».
«The investment can be made through venture capital funds managed by financial intermediaries (venture capital companies or venture capital management companies), with the aim of promoting the growth, expansion and consolidation of business projects, as well as the development of new business areas and new products, through the restructuring of the respective business models and the professionalization and reinforcement of the management team of the final beneficiaries», he explains.
According to the BPF, “this instrument is estimated to have an impact on the economy of more than 350 million euros”.
As for the Strategic Recapitalization Programme, it has an endowment of 400 million euros and “promotes direct investment in strategic, non-financial and viable national companies, which carry out activities in the national territory and which meet the defined eligibility conditions”.
«The program provides for investment using equity or quasi-equity instruments, fostering partnerships with private investors and its main objectives are to stimulate the long-term sustainable growth of the Portuguese economy and reduce the structural capitalization deficit of the business fabric, particularly worsened during the pandemic crisis", says Banco de Fomento.
It is estimated that this instrument will have an impact on the economy of around 500 million euros.
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