The Finnish Fund for Industrial Cooperation Ltd (Finnfund) is a development finance company that provides long-term investment loans and risk capital for private projects in developing countries. We support profitable and responsible projects that have positive development impacts in the target area.
We operate in challenging markets where commercial financing is hard to obtain. As a development finance institution, our job is to mobilise commercial finance for private enterprise projects that reduce poverty and promote sustainable development.
Finnfund invests in the projects of Finnish companies and their partners, as well as in projects that generate significant environmental benefits or support the economic and social development of the target country.
Financing is on market terms and depends on the risk profile of the project. In addition to long-term investment loans, we make equity investments and can offer our customers subordinated loans or other mezzanine financing. Regardless of the form of finance, we always participate as a minority investor.
Our main points of focus are renewable energy and sustainable forestry but we also finance a broad array of projects in other sectors.
Operating in conjunction with Finnfund is a business partnership programme, Finnpartnership, financed by the Ministry for Foreign Affairs. It provides business partnership support for Finnish companies and Finnish civic organisations that are seeking to internationalise, and helps them to find partners and new business opportunities in developing countries.
Alongside finance, our clients have access to Finnfund’s contacts at other financial institutions and our long-term experience of developing countries and various sectors.
In addition to direct investments, Finnfund also provides finance for the private sector of developing countries indirectly, via venture capital funds. Cooperation with funds operating in developing countries and with development finance institutions provides us with valuable contacts and information about local markets and sectoral development.
Finnfund is a member of the Team Finland network, which promotes Finland and the success of Finnish companies abroad. The network brings together state-funded players and services for the internationalisation of Finnish companies, for attracting foreign investments to Finland, and for promoting Finland’s country brand.
Finnfund collaborates closely with other European development financiers. It is a member of EDFI, the Association of European Development Finance Institutions.