Investment Fund for Developing Countries (IFU)
Last updated on 08 Mar 2024

Key facts


IFU provides advisory services and risk capital to Danish companies wishing to do business in developing countries and emerging markets.

Fredericiagade 27
1310 København K
Denmark

+45 33 63 75 00

www.ifu.dk
PUBLIC
1967
Credit rating (sovereign) (S&P)
AAA
Foreign currency

Products


  • IFU can provide direct loans to companies:
    • Up to DKK 100 million
    • Tenors typically between 5 and 7 years
  • IFU can also provide guarantees to a company’s bank for a loan to support the company’s operations or expansion plans
  • IFU may provide direct investments in companies:
    • IFU is always a minority investor with approximately between 10% and 30% of the total investment
    • In small projects IFU can take up to 49%
    • Up to DKK 350 million per investment
    • IFU typically exits after 5 to 7 years
  • IFU can also provide quasi-equity financing (mezzanine capital, subordinated loans, convertible loans, etc.) to strengthen the financial resources of up-and-coming companies, without diluting the position of its shareholders
  • Danish SMEs may receive grants from IFU to set up businesses in developing countries
  • Financial support can be obtained for optimisation of business plans, organisational and managerial development, recruitment, environmental studies, training and implementation of sustainability action plans, for example
  • Requirements:
    • The investment country must be a developing country
    • The Danish company must meet the criteria for being an SME
  • IFU offers professional advice in Denmark and abroad, from the initial idea through the establishment phase, and until a project is economically viable

Policies


  • Companies that use IFU’s products must meet the following conditions:
    • There must be Danish investors or interests in the project in the host country
    • The business operation must be commercially viable
    • Projects must have a positive development impact on host country
    • The host country must be on the list of IFU-eligible countries
  • IFU has investment teams specialized in:
    • Green energy and infrastructure
    • Financial services
    • Healthcare
    • Sustainable food systems

News


  • 2024: TBC and FMO sign EUR 80 million syndicated subordinated facility
  • 2023: IFU supports new fund for climate-smart agriculture and food systems
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