January 12, 1997
(Executive Council)

Province launches Immigrant Investor Fund

Premier Brian Tobin officially launched the province's government administered Immigrant Investor Fund today in Seoul, Korea. The premier was joined by representatives of the Hong Kong and Shanghai Bank Group, who will be the exclusive distribution and escrow agent. The HSBC Group is one of the world's leading international banking and financial services organizations with major consumer, commercial and investment banking and insurance businesses. The organization has a great deal of experience in raising money under the Business Immigration Program, having raised in excess of $300 million since the program was introduced in 1986.

The fund will permit potential investors to obtain Canadian Visas providing they meet criteria set up by federal Canadian Immigration. Applicants must: have proof that they have amassed the equivalent of $500,000 Canadian in net personal worth as a direct result of having controlled or operated a successful business; agree to invest a minimum of $250,000 Canadian in an eligible Canadian fund or business, approved under the Immigration Program; have a good health record and no criminal record. All potential investors must apply for a Canadian Visa at the Canadian Embassy or Consulate in his or her home country.

Geoff Calvert, chief executive officer for the Korean branch of HSBC, expressed great enthusiasm in the fund. Calvert said: "The recent resource developments ongoing in the province, like Hibernia and Voisey's Bay, coupled with the government's improving fiscal position are the strong endorsements required to successfully market this fund. These factors make Newfoundland and Labrador an attractive place for Asian investors." At the launch five initial investors were confirmed, with the application process continuing for an additional seven.

Premier Tobin said this will be the first fund of this nature for the province which will own and direct investments. He said: "All monies raised by the fund will be invested in eligible projects in Newfoundland and Labrador which represent public-private partnering arrangements. This investment will lead to the development of projects that are consistent with the province's infrastructure strategy and will contribute to economic growth in the province."

The federal government approved the fund under the auspices of the Immigrant Investor Category of the Business Immigration Program. The Newfoundland Government Fund Limited is authorized to go to the marketplace to raise a maximum of $35 million from qualified immigrant investors. In order to become operational and make investments in the province, the fund must raise a minimum of $3.5 million.

The fund will be open to all eligible investors but marketing will be concentrated in Korea, Hong Kong, and Taiwan. Investors are responsible for the money invested in the fund. The government will not be responsible for guaranteeing the repayment of any of the investor's money and monies will not be repaid to the investors for five years from the date the monies are invested in projects.

Contact: Cathy Dornan, Director of Communications, Premier's Office, (709) 729-3570.