Facts about IFU
FAQs about IFU
What is IFU's objective?
IFU's objective is to promote private investment in developing countries in collaboration with Danish trade and industry.
What can IFU offer Danish companies?
IFU provides advisory services and risk capital to companies wishing to do business in developing countries and emerging markets.
What kind of funding can IFU provide?
IFU makes investments on commercial terms by committing equity capital or by providing loans or guarantees. Investments are channelled directly to a project company established in the relevant developing country.
IFU advisory services
IFU advises on how to prepare for, establish and operate project companies in developing countries. IFU offers advice on how to establish new companies, set up joint ventures with local business partners, acquire already existing companies and in connection with projects with a Danish interest.
These advisory services are provided in part by IFU representatives serving on the boards of the project companies established in developing countries.
Advisory services are provided by IFU's investment managers based in Copenhagen or at IFU's regional offices in China, India, Singapore, South Africa, Kenya, Ghana, Egypt and Colombia.
How much can IFU invest?
IFU can invest up to a maximum of DKK 100 million per project company. Generally, IFU has a mandate to take up to a 30% stake in an investment project, but up to 49% in small projects.
Who is eligible for investments by IFU?
Any enterprise wishing to do business in one of the nearly 150 countries eligible for IFU investments.
The requirements are:
There must be a Danish investor or a Danish interest in the projct;
The business operation must be deemed to be commercially viable;
Projects must have a development impact in the host country
The host country must be on the list of developing countries eligible for IFU investment. Click here to see the list.
Can IFU provide additional financing?
Through its close relations with international and local financial institutions, IFU may assist in procuring additional funds for a project.
IFU is the fund manager of IFU Investment Partners, a fund committing equity to project companies established by IFU. This channel gives companies access to additional risk capital over and above IFU's general cap of 30% of an overall investment.
How many investments have IFU made?
Total committed investments by IFU and IFU managed funds amount to DKK 155bn in almost 1200 companies, of which IFU has contributed close to DKK 17bn.
IFU's annual investment amounts to about DKK 800m and involves 45 to 60 companies.
Where does the money come from?
IFU, IØ and AIF are public financed funds with a total commitment of DKK 4bn at the 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.