– Due to the crisis, among other things, Danish companies often have difficulties obtaining financing for their investments in developing countries and emerging markets. Therefore I am pleased that once again we were able to offer advice and risk capital for Danish companies to gain a foothold in new markets, and that we can contribute to promoting development and increase employment in poor countries, said Finn Jønck, Managing Director of IFU.
IFU contracted investments of DKK 510m in 2011. Close to DKK 180m was invested in Africa and DKK 200m in Asia. The remaining investments were made in Latin America and Europe. IFU only contributes part of the financing, thus the total investment is expected to amount to around DKK 3bn.
The total direct employment in the companies where IFU has invested is expected to be close to 17,000, of which 4,500 are new jobs.
IFU recorded net income of DKK122 in 2011.
– Despite the economic and financial crisis, IFU has made reasonable earnings in the past couple of years, and it is very positive that the result for 2011 is better than expected. IFU’s result also shows that there are business opportunities for Danish companies in the new markets, said Finn Jønck.
Several new assignments for IFU
Since 1990, IFU has been fund manager of the Investment Fund for Central and Eastern Europe (IØ). In addition, IFU became fund manager of The Arab Investment Fund (AIF) in 2011. AIF will provide advice and risk capital to Danish companies wishing to set up business in North Africa and the Middle East.
Furthermore, IFU and the Danish pension funds PKA and PBU established IFU Investment Partners that will contribute equity to larger Danish investments in developing countries and emerging markets. The two pension funds have decided to invest DKK 500m in IFU Investment Partners, of which IFU will be fund manager.
Finally, IFU took over the Danish Ministry of Foreign Affairs’ shares in NORSAD, which invests in private companies in sub-Saharan Africa.
– With close to 1,200 investments in more than 100 countries, IFU is the most experienced investor when it comes to direct investments in developing countries and emerging markets. The new activities are an expression of confidence in IFU’s expertise, and that is very satisfactory, said Finn Jønck.
For further information, please contact Rune Nørgaard, Head of Communication, tel +45 33 63 75 60.