Dutch institutional investors and banks have joined forces to provide financing for companies in the Netherlands.

The fund – dubbed NL Ondernemingsfonds – will co-finance company loans and is projected to reach more than €1bn in size.

The first loans will be issued later this year.

Pension providers MN and Syntrus Achmea, banks ABN Amro, ING and Rabobank, asset manager Robeco and Euronext Amsterdam have taken the initiative to set up NL Ondernemingsfonds, with the purpose of creating a new source of financing for businesses seeking to expand.

In the coming weeks, other investors are be invited to participate, organisers said.

As from the second half of 2014, Dutch businesses will be able to take out a loan jointly financed by their own bank and the NL Ondernemingsfonds fund.

Loans, aimed at companies with a turnover more than €25m, will be for a minimum of €10m.

At a later stage, NL Ondernemingsfonds may also provide financing for smaller companies, organisers said.

The plan is to expand the scope of the fund to €1bn within five years.

The fund will focus on institutional investors and be managed by Robeco.

Euronext Amsterdam, drawing on its position in the public capital markets, will “bring the parties together”, together with the support of AF Advisors, Deloitte, PwC and the Dutch Bankers Association.