Finnfund invests in business activities in developing countries
Finnfund is an impact investor that promotes sustainable development by offering financing to profitable and responsible companies in developing countries.
Finnfund is a Finnish state majority-owned development finance institution. It offers long-term risk financing and investment loans to companies operating in developing countries. Each year, Finnfund makes 20–30 new investments totalling approximately EUR 200–250 million.
By financing private businesses in developing countries, Finnfund aims to promote their economic and social development. Investees must meet certain criteria, including profitability, environmental and social responsibility, and measurable development impacts in the target country. Finnfund places special emphasis on sectors that are critical to sustainable development, such as renewable and emissions reducing energy, digital infrastructure and solutions, sustainable forestry and agriculture, and financing.
In 2017–2021, Finnfund was provided EUR 100 million in capital. The company was also granted convertible loans from the appropriations for development policy investments; these amounted to EUR 130 million in 2016 and EUR 210 million in 2019. In addition, the government has issued a loss compensation commitment of EUR 150 million for investments with significant development or climate impacts in 2018–2024. At the end of 2020, Finnfund’s investment assets totalled EUR 608 million.
Read more about Finnfund on the Finnfund.fi website(Link to another website.).