Brief presentation

Legal  mandate
For the purpose of promoting economic activity in developing countries, IFU has been created to promote investments in these countries in collaboration with Danish trade and industry.

What it offers
IFU offers capital and advice to joint venture enterprises in developing countries.

How it works
IFU participates as a partner in the joint ventures through committing equity capital and/or loans and through board membership.

Financial engineering
Due to IFU’s close contacts with Nordic, European, international and local financial institutions, IFU is often able to make complete financing arrangements on favourable terms.

Partnership
IFU works in a spirit of partnership with Danish and local applicants and maintains this spirit throughout the joint work in the investment projects. Based on its many years of experience with a wide range of investments, IFU acts in an advisory capacity during the preparatory and initial phases of investment projects.

Once the project is established, IFU takes a seat on the board of directors.

Size of investments
Both large and small projects, including pilot projects, are eligible for IFU financing. This flexibility suits both the needs of developing countries and the structure of Danish trade and industry.

Eligibility
To be eligible, a project has to be financed in part by a Danish business partner.

The project must further be evaluated as being a commercially viable project.

Green-field projects, expansion of existing projects and privatisation of state-owned enterprises are eligible.

Host countries of investments must be on the OECD’s DAC list of development aid recipients, and the 2008 GNI capita income may not exceed USD 3,084 (2010). A general exemption from this limit has been granted to South Africa, Botswana and Namibia.

Experience from
652 projects in 79 countries.