Finnish Fund for Industrial Cooperation Ltd. (FINNFUND)
Last updated on 08 Mar 2024
Key facts
Owned by the State of Finland, Finnvera, and Confederation of Finnish Industries (EK), Finnfund offers long-term risk capital for private projects in developing countries.
PUBLIC
1980
Credit rating (sovereign) (S&P)
AA+
Foreign currency
Authorizations and exposure
FY 2022 exposure top sectors
Financial institutions
26%
Forestry
18%
Energy
16%
Digital infrastructure and solutions
7%
Agribusiness
7%
FY 2022 exposure
Products
- Direct loans to project companies
- Tenor: Medium- to long-term
- Repayment schedule is tailored to suit the project
- Provided in EUR or USD
- Collateral is determined based on the project
- Equity financing: For minority shareholding and does not usually exceed the shareholding of the sponsor
- Funds are provided directly or through a holding company for the project company
- Mezzanine financing: Includes unsecured subordinated loans, preferred shares, and convertible bonds
Policies
- The projects should have a qualified industrial sponsor strongly committed to the project
- The project itself must operate in a developing country
- Finnfund’s financing is not tied to exports from Finland—it does not finance exports
- Funds with other financial institutions when necessary
- Selectively finances the local private sector through intermediaries such as private equity funds
- Eligibility requirements:
- Project has to be implemented responsibly
- Target a developing country as defined by the OECD
- Generate measurable development impacts
- Be financially profitable
News
- 2024: Finnfund issues a EUR 100 million green bond
- 2023: EU and Finnfund launch the Africa Connected Programme to mobilize more than EUR 1 billion for Sub-Saharan Africa’s digital infrastructure
