Document ID: chunk:federal_register_of_legislation:F2023L01671:clause:2_14
Version: federal_register_of_legislation:F2023L01671
Segment Type: clause
Provision Reference: sch 2 cl 14
Character Range: 15497–17333

14  Limits on equity investments
 (1) The Facility must not provide financial assistance in the form of an equity investment in an entity under subsection 7(1A) of the Act if doing so would result in the Facility or the Commonwealth, or Commonwealth entities either alone or together:
 (a) holding a majority of the equity interests in the entity; or
 (b) being in a position to control the entity.
 (2) Subsection (3) applies if:
 (a) the Facility holds one or more equity interests in an entity; and
 (b) the Facility becomes aware that holding those equity interests results in the situation referred to in subsection (1).
 (3) The Facility must, as soon as reasonably practicable in the circumstances, realise sufficient equity interests so the situation no longer exists.
 (4) In this section, control has the same meaning as in the definition of "subsidiary" in the Public Governance, Performance and Accountability Act 2013.
 (5) In deciding whether to offer financial assistance in the form of an equity investment, the Facility must:
 (a) target a portfolio return for the Facility's equity or equity-like investments before Facility operating expenses, over the medium to long term, which is at least the five-year Australian Government bond rate plus a premium of 3 per cent per annum (the Target Portfolio Return);
 (b) apply all of the Mandatory Criteria except for criterion 4.
 (6) Unless exempted by written agreement of the responsible Ministers, the Facility must not make:
 (a) Investment Decisions that would result in the Facility providing more than $500 million in equity investments overall; or
 (b) an Investment Decision that would result in the Facility providing an equity investment for a Project of less than $5 million or more than $50 million.

Part 4—Directions about risk, governance and consultation