Ireland’s national pension fund ISIF is setting aside €500m for investment in five regional cities.

The Ireland Strategic Investment Fund said the city-specific investment programmes aims to further enhance the economic potential of Cork, Galway, Limerick, Waterford and Kilkenny.

The new investment strategy replaces the Pandemic Stabilisation and Recovery Fund, which has come to an end. 

ISIF says the new initiative is a cornerstone of its new investment strategy, and will result in major investment being targeted to each city in the form of new places to work, places to live and enabling investments resulting in regeneration of regional city centres.

Part of the funding will be earmarked for funding emerging and scaling businesses.

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The organisation stated: “While ISIF’s statutory mandate to invest for a commercial return in investments that support economic activity and investment in Ireland remains unchanged, the focus of the new strategy will be on long-term transformational investments addressing key strategic challenges facing the country.

“These include climate action, housing and enabling infrastructure, scaling indigenous businesses, and food and agriculture.”

ISIF has also pledged to fund the delivery of 25,000 new homes by 2030 through a range of equity and debt investments. The pension fund says it has already committed €950m to housing investments that are on course to deliver 16,000 new homes over the coming years.

ISIF  previously committed to invest €1bn of taxpayer funding in ‘transformational climate action investments’ that will support Ireland’s transition to a Net Zero low-carbon economy. 

Four themes will inform the investment strategy: Housing and enabling infrastructure; Climate; Scaling Businesses; and Food and Agriculture.

The organisation said it will invest outside of these four themes if necessary, using a new pool of capital under a National & Compelling theme which will be dedicated to unforeseen macroeconomic events.

Finance minister Paschal Donohoe commented: “I am greatly reassured by the fact that ISIF retains the flexibility to invest outside of four themes if necessary. Having this flexibility allows the Pandemic Stabilisation and Recovery Fund, established in response to the pandemic, to be wound down.

“I am also very pleased to see that a cornerstone of the strategy is a €500m city-specific investment programme.”

ISIF director Nick Ashmore said: “We are planning a material step-up in our regional investments with a new initiative to unlock the economic potential of our five regional cities by backing transformational projects in each.

“Our new strategy also sets out a range of investment programmes that will back scaling-up businesses, deliver additional housing, and underpin the ambition displayed in our domestic food and agri sector.”