Michael McGrath (Cork South Central, Fianna Fail)
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253. To ask the Minister for Finance further to Parliamentary Question No. 250 of 29 September 2015, if he will confirm the interest rate that will apply to finance drawn down by borrowers under the fund; and if he will make a statement on the matter. [34281/15]

Michael Noonan (Limerick City, Fine Gael)
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The Ireland Strategic Investment Fund (ISIF) has advised that Activate Capital is prepared to lend up to 90% of the peak funding requirement of residential development projects, including site and working capital (construction) costs. The Platform will also consider lending to projects which do not benefit from "ready-to-go" planning permissions. The product offering is therefore very different to that which is available from the banks, providing customers with significant funding advantages, together with deliverability and speed of execution. To justify the incremental lending risks above what is currently being offered by the Irish banks (which might otherwise require developers to source a multiple of the proposed equity contribution), Activate prices its product at a premium to bank finance. Pricing will depend on a number of factors. In full risk situations, the price is low-teens of per cents, a portion of which is linked to sales realisations.