Spain Launches Sovereign Wealth Fund 'Spain Grows'

Spain is establishing a state-owned sovereign wealth fund, named 'Spain Grows', to enhance housing supply and national security. The fund will extend the impact of the EU's Next Generation funds, set to expire in 2026, utilizing 10.5 billion euros from EU funds and 120 billion euros from private debt.

Spain announced the creation of a state-owned sovereign wealth fund aimed at bolstering housing availability and national security. Prime Minister Pedro Sanchez revealed the initiative on Thursday.

The new fund, dubbed 'Spain Grows', seeks to prolong the economic benefits of the European Union's Next Generation funds, which were instrumental in Spain's recovery from the COVID-19 pandemic. These funds are scheduled to end in 2026.

According to Sanchez, the fund will initially draw 10.5 billion euros from EU funds, supplemented by 120 billion euros through private debt, with more details expected to be disclosed the following week.

(With inputs from agencies.)