Loan to Finn Church Aid Investments fund

Description What is done in the programme or project and why, what results are pursued, who benefits from the activities and who are involved in the implementation.

The government grants a loan of EUR 16 million to Finn Church Aid Investments fund. FCA Investments is an impact investment fund founded and 100% owned by Finn Church Aid (FCA). The fund invests in developing countries only and targets small and medium-sized enterprises. The initiative reflects a global trend in development cooperation where there is a strong push towards supporting developing country economies and employment by strengthening the private sector in those countries. FCA Investments is the first impact investment fund founded by a Finnish non-governmental organization. The fund has two objectives. It is set to make investments that maintain and create decent paid jobs thereby improving the incomes of low-income earners. Secondly, it aims to improve affordable access to basic services and products. Some of the funds will be channeled via other funds while FCA Investments will also pursue direct investments. Funding contracts can be in the form of loans, mezzanine or equity. Technical assistance provided by the FCA will complement the financial support.