Background

We are not a provider of aid or business grants. We work on a commercial basis, because we believe that business investment is a good way to create lasting economic improvement.

IFU is an independent government-owned fund offering advisory services and risk capital to Danish companies wishing to do business in developing countries and emerging markets. Furthermore, IFU is fund manager of a number of other investment funds, such as the Danish Climate Investment Fund, IFU Investment Partners and the Arab Investment Fund.

We are not a provider of aid or business grants. We work on a commercial basis, because we believe that business investment is a good way to create lasting economic improvement.

IFU makes risk capital available in the form of equity, loans or guarantees for project companies established by Danish companies in one of the 150 countries eligible for IFU investment. In addition, IFU acts as an adviser during the establishment phase and a project company's first few years in operation, typically pulling out when the company can operate on its own.

Advisory services are provided by IFU's investment managers based in Copenhagen or at one of its seven regional offices in Africa, Asia and Latin America.

IFU and IFU managed funds have invested in nearly 1200 projects in more than 100 countries. Investments generally produce positive results and have turned out to be good business for all parties involved; for the host country, for the Danish company and for IFU.

Good business for developing countries

Total investments to date amount to DKK 155bn, of which IFU has contributed more than DKK 17bn. This has helped to create about 400,000 jobs in the host countries. In addition, IFU's presence has resulted in a transfer of knowledge and technology, the employees have received training and education, and economic activity and a basis of income have been created for the host countries.

IFU also helps to highlight a project company's corporate social responsibilities of ensuring that employees are given proper working conditions and that a project company's production is socially and environmentally sustainable.

Positive effects for Danish companies

IFU has co-invested with more than 500 Danish companies. In the vast majority of cases, the project companies established in developing countries have been a success, making a positive contribution to the overall performance of the co-investing Danish company.

The Danish companies have gained access to new markets, becoming able to plan and start up international and more efficient production. In many cases, this has also produced higher revenue in Denmark and stronger earnings.

Profitable return to IFU

Over the years, IFU has had a fair return on its invested funds. Gross return on investments has been above 10 % over the past years. The profit is used to cover IFU's operating costs and for investing in new project companies.

IFU and public financed funds IØ and AIF had an aggregate commitment of DKK 4bn end of 2014. The Danish Climate Investment Fund and IFU Investment Partners are public-private funds with a total capital commitment of DKK 1.8bn.

 

Contact person
Rune Nørgaard

Rune Nørgaard

Communication Director
Tel.: +45 33 63 75 60
Mob.: +45 22 68 75 60
rno@ifu.dk