Rania Ekaterinari: HCAP finances investments in 5G technologies

Subsidiary company, Faistos, will receive 25% of revenues from the sale of bandwidth and will serve as venture capital to support new investments in applications

The Hellenic Corporation of Assets and Participations, also known as Superfund, is quickening its pace for the implementation of investment plans involving the digital transformation of state-owned enterprises and financing investments in cutting end technologies. In this context, the Superfund, through its wholly owned subsidiary “Faistos” will receive as “dowry” 25% of revenues from the sale of bandwidth for the advanced 5G mobile telephony system. With these revenues as as well as other available funds from HCAP, Faistos will act as a venture capital to finance new investments in 5G applications. According to initial plans, the government expects to raises €350m from new, fifth generation mobile telephony licenses, through a tender that will be completed by December 20th. Expression of interest has been planed for October. The three main mobile telephony players, Cosmote, Vodafone and Wind will participate in the tender procedure.

Change and opportunities

It is believed that the new 5G communication network will develop into a key driver for change, by creating opportunities and, possibly, disrupting traditional operational models of companies and state-owned enterprises. The high speeds and minimal delays in transmission associated with 5G create substantial innovations for developing applications and solutions for superfast exchange of information and interaction in sectors including health, manufacturing, work, transportation, management of the environment and everyday life.

Priorities

5G technologies will bring significant new capabilities to utility networks in ways that will determine the future of whole sectors, such as energy, transport and logistics.

Thus, the creation of a dedicated 5G investment capital in Greece, under the structure of HCAP, which will examine, support and promote solutions from start-up and other companies, is one of the Superfund’s priorities.

“5G technology, along with the obvious advantages it brings, such as increased speed of transactions, security, etc., also offers a significant opportunity,” notes CEO Rania Ekarterinari, and adds: “It requires the creation of an ecosystem of cooperation between the state, academic and research institutions, the technology sector, local authorities, start-ups and state-owned enterprises and utilities, while it can also attract investment capital.”

Cutting edge technologies  

It is worth noting that state-controlled utilities can play a key role in developing the ecosystem for 5G and other cutting-edge technologies by capitalizing on their extended networks as well as through application with added value, such as “smart transport” or “smart energy networks” which are based on transfer and analysis of data in real time.

Participations

HCAP was founded following an initiative of the country’s creditors (third MOU) at the beginning of 2017, with the aim of bringing under one unified structure the state’s participations in large state-owned enterprises as well as the Greek state’s real estate assets. The objective is to better manage state assets and act as a connecting link between companies and the state.

Debt reduction

The portfolio of HCAP’s subsidiaries includes the Hellenic Republic Asset and Development Fund (HRADF), with all its participations, the Public Properties Company (ETAD), as well as emblematic utilities with a majority participation, such as the Athens and Thessaloniki Water and Sewerage Companies (EYDAP and EYATH), Athens public transport company (OASA), Hellenic Post (ELTA), while HCAP also owns minority shares of the Public Power Corporation (DEH) and Athens International Airport, Elefethrios Venizelos.

Revenues from privatisations handled by HRADF are used exclusively to reduce state debt, while HCAP’s revenues from the dividends of its subsidiaries are used partly for the same objective, while the rest are used to finance the Public Investment Program as well as investments by its subsidiaries.

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