Water utility VVS launched risky investment fund

Košice-based water utility VVS, owned by municipalities, set up the H2O Fund investment fund in Prague, which will focus on water management projects in Europe, the UK and Israel. The initial capital is €50m, the fund is managed by Avant and the depositary is ČSOB. It aims to raise new money from investors, who will not have a guaranteed return as with bonds. The bonds received by shareholders guarantee a return of 6% p.a. In the future, VVS also wants to establish a bank, which will initially provide loans to employees and later to other entities. The face of these risky activities is lawyer Daniel Kratky. Audit authority NKÚ warns that this may be an attempt to secretly privatize VVS, which by law can only be owned by municipalities and the state. VVS is in poor financial shape, losing €5.6m over the past six years.

(dennikN.sk)