PARIS, Nov 3 (Reuters) - French public investment bank
Bpifrance said on Tuesday it had bought 5.08% of chemicals group
Arkema in the first investment of its new equity investment fund
Lac1 that was set up to boost French firms.
Bpifrance has so far deployed 348 million euros ($405.7
million) from the 4.2 billion fund building up the stake since
June and aims to keep adding to the position, Chief Executive
Nicolas Dufourcq told journalists.
Bpifrance, which manages the fund, has put 1 billion euros
of its own money into Lac1 with the aim of shoring up the
capital base of big French companies with long-term investments.
Abu Dhabi sovereign wealth fund Mubadala Investment Co has
also put 1 billion euros into the fund while French insurers and
other investors have committed 1.2 billion euros. The fund has
also raised 1 billion euros in debt for its investments.
Bpifrance said in the past it eventually aimed to raise up
to 10 billion euros for the fund and invest in about 15
Dufourcq said Bpifrance was looking at other companies and
was close to taking a decision on another investment.
($1 = 0.8578 euros)
(Reporting by Leigh Thomas; Editing by Edmund Blair)