Finnish Fund for Industrial Cooperation Ltd (FINNFUND)
About Finnfund
Finnfund is a Finnish development finance company that provides long-term risk capital for private projects in developing countries. Finnfund co-invests with Finnish companies, finances ventures that use Finnish technology and cooperates with Finnish partners that generate major environmental or social benefits.
Market terms and minority stake
The terms of Finnfund’s financing are market-related. They do not extend soft loans but are ready to share risks by providing long-term financing for promising projects in challenging markets, where the availability of such financing from commercial sources is often highly restricted.
Finnfund’s funding can be in the form of equity capital, mezzanine financing or long-term investment loans. Finnfunds seeks to be a financial investor with a minority funding share in projects managed by the industrial sponsor, typically a Finnish parent company.
Experience from developing markets
Apart from offering risk capital, Finnfund can bring in links to its network of development finance institutions and other potential co-financiers, as well as its experience from financing and joint venture arrangements in the target country.
Finnfund finances projects in developing countries and Russia, and has currently 6 operative projects in China.
While most of Finnfund’s past investments have been in the manufacturing sector, they also finance projects in other sectors such as agribusiness, power generation, telecommunications, and services.
To learn more about Finnfund, please visit its website.