Major European public financial institutions have launched a pan-European equity fund to boost key EU policies in areas such as climate change, energy security and transport networks.

The "Marguerite Fund" - a pan-European equity fund - was launched with initial capital of €600 million by the European Investment banks and five national public investors.

These include France's Caisse des Depots and Germany's KfW Bankengruppe.

Marguerite, the first joint initiative of Europe's leading public financial institutions, is one of the biggest fund raising exercises in 2009 in Europe, with a target total of €1.5 billion by the end of 2011.

The fund "will provide equity or quasi equity to companies which own or operate infrastructure in the sectors of transport and energy," the sponsors said in a joint statement.

The investors in the fund and other long term credit institutions intend to establish a debt co-financing Initiative.

The fund, which has also received the support of the European Commission since the idea was first floated last year by the Italians, "should serve as a model for the establishment of other similar funds in the EU wishing to combine a market-based principle of return to investors with the pursuit of public policy objectives," the investors said.

As well as the EIB, French and German investors, the fund was also launched by Italy's Cassa depositi e prestiti, Spanish public bank Insitituto de crédito oficial and the Powszechna Kasa oszczednosci bank polski, in which the Polish state has a majority share.

The six pioneers, which provide €100 million each, hope other investors will join them in the months and years to come.