Legislative proposals enabling the merging of the State’s capital investment and business financing activities sent out for public consultation

In line with the Government Programme of the Finnish Prime Minister Petteri Orpo, the State’s capital investment and business financing activities will be optimised by merging Business Finland Venture Capital Oy (BFVC), The Finnish Climate Fund and Oppiva Invest Oy under the ownership of Tesi, Finnish Industry Investment Ltd. The legislative amendments enabling this change are now open for public consultation.

Under the new framework act, the new Tesi Group will comprise of a parent company (Finnish Industry Investment Ltd, Tesi), operating on market terms, and its subsidiary (Teollisuustuki Oy), focusing solely on activities involving state aid elements. A two-company model is necessary to ensure the distinction between market-priced financing and the potential use of state aid elements.

All market-priced activities will be managed through the parent company Finnish Industry Investment Ltd, and the current market-priced investments of the Climate Fund, Oppiva Invest and Business Finland Venture Capital will be transferred to Tesi’s portfolio. The only operations to be transferred to the subsidiary are BFVC’s fund investments involving state aid. More detailed instructions on the practical operation of the new Group will be given in an ownership steering letter, the preparation of which will begin this spring. The new company is scheduled to start operations in 2025.

We set our goals high – we want to be a trendsetter at the European level. It is also clear that the new Group will have a significant industrial policy task focused on the growth and renewal of the Finnish economy as well as the promotion of investments”, says Tesi’s CEO Pia Santavirta.

Read more: Ministry of Economic Affairs and Employment’s press release

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