Michael McGrath (Cork South Central, Fianna Fail)
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101. To ask the Minister for Finance when the National Pension Reserve Fund will commence investment in the small and medium enterprise fund managed by Blue Bay Asset Management; when he expects loan draw down from the fund to commence; the amount of funds the NPRF will commit to the fund in 2013; the approximate amount of jobs the fund can support; and if he will make a statement on the matter. [23502/13]

Michael Noonan (Limerick City, Fine Gael)
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The National Treasury Management Agency (NTMA), as Manager of the National Pensions Reserve Fund (NPRF), has advised that a Letter of Intent was signed on 8 January 2013 in respect of the SME Credit Fund to be managed by BlueBay Asset Management. This fund aims to make loans of between €5 million and €50 million to borrowers that are established companies, with a strong credit profile and demonstrable ability to support sensible debt levels, and will not be mandated to lend to companies in distress. The SME Credit Fund may also seek to acquire existing loans from other institutions, where those loans are scheduled to mature in the near term and where the existing lender intends to exit the lending market in Ireland. The NPRF commitment will be €175 million to €325 million depending on the quantum of capital raised from Irish and international investors. The SME Credit Fund expects to have a portfolio of 25-30 investments once capital has been deployed.

The NTMA is currently finalising documentation with BlueBay and BlueBay is marketing the Fund to prospective investors both in Ireland and overseas. It is expected that the Fund will close and be launched by the middle of the year. The rate of drawdown will depend on the rate at which Bluebay is able to make loan investments. BlueBay is currently developing a pipeline of potential loan transactions.

Details of individual investments made by the NPRF are commercially sensitive and, as a commercial investor, the NPRF is subject to confidentiality provisions in the various fund formation agreements. The NPRF intends to publish a report regarding the investments made under the Strategic Investment Fund programme in July and January each year, commencing in July 2013. Future announcements in respect of any material developments in relation to the SME Credit Fund will be made available on the NPRF website.