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23 February 2005.

IFU INVESTED IN RECORD NUMBER OF PROJECTS IN 2004

During 2004 The Industrialisation Fund for Developing Countries (IFU) invested in 30 new projects together with Danish companies. It is the largest number in IFU’s 38-year history.

During 2004 The Industrialisation Fund for Developing Countries (IFU) invested in 30 new projects together with Danish companies. It is the largest number in IFU’s 38-year history.

Total investments in new projects amounted to DKK 1.6bn. Of this IFU’s investments amounted to DKK 321m, of which DKK 222m was share capital and DKK 99m was loans.

In 2003 IFU co-financed 24 new projects with a total IFU investment of DKK 424m.

Since 1967 IFU has invested in developing countries together with Danish companies in an effort to promote economic growth and development in those countries.

The investments in new projects in 2004 were made in 12 different developing countries in Central and South America, Africa and South and Southeast Asia and include production of Internet connections, medicine for AIDS treatment, shoes, furniture, beer, security systems and steel components. The projects are expected to create 11,900 new jobs in the countries in question. More than 60% of the new projects have been established in collaboration with Danish companies with less than 300 employees.

After a few years’ break IFU co-financed a project in Nigeria, Africa’s most populous state. The project, in which the Danish company, Emperion, is a partner, will provide Internet connections in Nigeria. Total investments amount to DKK 42.5m, of which IFU provides DKK 7.2m.

In 2004 IFU provided additional financing to 14 existing projects in the amount of DKK 123m; DKK 69m in share capital and DKK 54m in loans.

IFU thus invested a total of DKK 444m in developing countries in 2004.

An evaluation of IFU, initiated by Danida, was completed in 2004. It resulted in a number of recommendations, of which several have been implemented. In this connection it should be mentioned that IFU has developed a special globalisation package for small and medium-sized enterprises (SMEs) supporting their increasing interest in working internationally – including in developing countries.

As a result of the increasing interest to invest in South Africa IFU has opened a new adviser office in Cape Town. IFU already has an office in Johannesburg.

IFU expects to make a profit of approx. DKK 20m in 2004 compared to a profit of DKK 97m in 2003. The decrease is, among other things, caused by a decrease in proceeds from sale of shares.

For further information, please contact
Sven Riskær, Managing Director Tel. +45 33 63 75 00
Frank Norman Larsen, Deputy Managing Director