It’s finally available. The Public Investment Bank (Bpifrance) officially launches its new product dedicated to the financing of companies in the defense sector, aimed at individuals.
Announced on March 20 during the event dedicated to the financing of the BITD (defense industrial and technological base), this fund will be accessible from 500 euros (up to 500,000 euros) and will allow individuals to invest in a portfolio of more than 500 “mainly unlisted” French and European companies in the defense sector and associated technologies.
Bpifrance announces that Groupe BPCE, Axa France and Meilleurtaux Placement support this Bpifrance defense fund and will integrate it into their product portfolio. It will be possible to invest through a securities account, an Action Savings Plan (PEA), a PEA-PME, life insurance or even a Retirement Savings Plan.
This “semi-open” fund, accessible through a specific online platform, aims for an annual net return target of 5%, indicates Bpifrance, which warns that it “only constitutes a management objective” and that it may present a risk of loss of capital, like any investment fund.
The subscription period is 10 years, with a lock-in period of five years, quarterly reimbursement possibilities will be accessible from the sixth year, specifies Bpifrance.
The goal is to raise between 300 and 450 million euros in total.
Bpifrance is not its first attempt at financial support for the defense sector: it is a shareholder “in more than 70 companies in the defense sector”, through two specific funds (Definvest, with the support of the General Directorate of Armaments, and the FID – defense innovation fund, in collaboration with the Defense Innovation Agency) and general funds. The Public Investment Bank also has interests in more than 30 companies, including Exosens and Sabena Technics (aeronautical maintenance).
Greater financing needs
In a study published in early October, Bpifrance Lab highlighted “the important need for financial support for defense actors”, estimating the need for financing the defense effort at €15 billion between now and 2030, of which €5 billion in equity and €10 billion in debt.
Rearmament requires, and to achieve the objective of dedicating 3.5% of GDP to defense spending (voted during the NATO general assembly last June), companies have been instructed to get ready to respond to the demands and comply with the orders that, for the moment, are still waiting.
The need to support BITD financing has also been taken into account at European level, in particular through the SAFE programme, which aims to allocate an allocation of 150 billion euros to joint purchasing projects (France has requested 16.22 billion euros). This program is part of the ReArm Europe plan, whose objective is to mobilize up to 800 billion euros to strengthen European military capabilities.
Source: BFM TV
