Special Risk Financing Instrument
Description
The Finnish Industrial Development Fund (Finnfund) is a Finnish financial institution with long-term risk financing, regulated by a separate Finnfund Act (291/79).The Ministry for Foreign Affairs is the organization responsible for steering Finnfund’s activities. The Company is non-profit, that is, it does not generate income for its shareholder. All income shall be reinvested in the Company. Finnfund’s main objective according to the articles of association is to promote the economic and social development of countries which the Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development (OECD) has classified as developing countries by directing human and material resources to the development of the industrial and other economic corporate activity of these countries. Finnfund is authorized to finance companies to be established and operating in developing countries, by acquiring shares and holdings in such companies, by granting loans and guarantees for such companies, by allocating resources for studies and reports connected with the start-up and development of the operations of the companies as well as by participating in the development and financing of the financial sector that serves the industrial and other production-related corporate activity of developing nations. The purpose of the Special Risk Financing Instrument is to enable Finnfund to make high-risk investments that nonetheless have significant development impacts that could otherwise not be financed by Finnfund. According to an evaluation carried out in 2018, the special risk financing instrument has steered Finnfund towards more high risk investments that are important for development. With special risk financing, potential credit or investment losses incurred by Finnfund’s investments could be partly covered with the loss guarantee granted by the State. This financing decision covers the incurred losses under the Special Risk Financing Instrument for Finnfund in 2019.
Funding decision 09.11.2020
2 183 163 €
Objectives monitored by OECD's Development Assistance Committee
- Trade development
- Aid to environment
- Climate change - mitigation
- Climate change - adaptation
Field of activity
- Formal sector financial intermediaries 100%
Funding channel
Teollisen yhteistyön rahasto Oy
Contact
Code for the object of funding
89892893
ID
UHA2020-006346
Modified
02.08.2021