By Muskan Arora

Greece will
set up its first sovereign wealth fund this week with its initial capital as EUR300
million, confirmed Kostis Hatzidakis, country’s minister of national economy
and finance.

For its inaugural
sovereign wealth fund, the country has hired BlackRock to “propose the best corporate
structure for the fund,” according to an Athens-based newspaper Kathimerini.

Hatzidakis also confirmed that it will receive funding
from the state and initially be financed with 50% of the valuation of the water
supply companies of Athens and Thessaloniki, EYDAP and EYATH.

The fund aims to invest majorly in the field of new
technologies and green investments, particularly in Greek companies with good
growth prospects, competitive advantage, and a strong management team.

It will also lookout for co-investments with other
public instruments and schemes, and equity investment funds.

These include closed-ended business holdings funds
based in Greece with an involvement of the Hellenic Development Investment
Bank, other private equity funds active in Greece and credit institutions.

 As a part of the
launch, the government will consolidate its privatization agency and bank
bailout fund with the existing Hellenic Corporation of Assets and Participations,
which was set-up in 2017 and has about $7.4 billion.