Spain to launch 'Spain Grows' sovereign wealth fund for housing and security

MADRID, Jan 15 — Spain will establish a sovereign wealth fund named "Spain Grows" to invest in housing supply and national security, Prime Minister Pedro Sanchez announced on Thursday.

The fund aims to extend economic stimulus beyond the 2026 expiry of the European Union's Next Generation funds, which were pivotal in Spain's recovery from the COVID-19 pandemic.

Sanchez said the fund will initially draw EUR 10.5 billion from EU sources and EUR 120 billion through private debt.

"More details about the fund's structure and investments will be unveiled next week," Sanchez said.

The fund represents a strategic move to secure long-term financing for critical national priorities.

It is designed to boost investment in housing and security sectors using a mix of public and private capital.

The announcement comes as Spain seeks to maintain economic momentum after the EU funds phase out.

Sanchez emphasized the fund's role in addressing national priorities through sustained financial support.

The initiative is part of broader efforts to stabilize the economy and enhance infrastructure.

Further operational details are expected in the coming week as the government finalizes the fund's framework.