The Danish International Investment Funds, IFU and IØ, once again achieved exceptional results in 2007 with a combined profit of DKK 659.8m. The results are directly linked to the fact that the major part of the commercial partnerships that the Funds have with Danish companies is a great success.
In 2007, the Funds invested DKK 633m in 63 companies, of which 42 were new projects. The new investments are expected to create more than 3,000 new jobs. This means that the Funds have now participated in creating an estimated 170,000 jobs in almost 100 countries throughout the world.
CSR
Both Funds have applied considerable resources to ensure that the project companies in the project portfolio are at the forefront of the highest international standards within companies’ Corporate Social Responsibility (CSR). The Funds’ project companies use the CSR policy as an active tool when planning daily operations and long-term strategies. This means that the project companies have been at the forefront of development within important areas such as environment, human rights, labour rights and anti-corruption.
Continued focus on Africa
IFU maintained its high investment level in Africa in 2007. IFU aims at extending its activities in Africa further, if a requested amendment of IFU’s legal framework makes it possible for IFU to invest in projects without a Danish partner. It could be micro financing projects, or investments of special interest to Denmark. To further increase its efforts in Africa, IFU opened a regional office in Nairobi, Kenya, in 2007. Furthermore, in May 2008, IFU will open a strengthened and reorganised office in Johannesburg, South Africa.
Capital extractions by the government
IFU and IØ are operated on commercial terms and are self-financing.
IØ paid back DKK 500m to the government in 2007, and it has been decided that IØ will pay back an additional DKK 600m in 2008. The large capital extractions should be viewed in the light of the very positive development in IØ’s liquidity over the past years, especially as a result of the phasing out of IØ’s portfolio in the EU accession countries. This means that by the end of 2008, IØ will have paid back DKK 2,050 in total to the government or about DKK 150m more than originally paid-in. In the years to come, IØ also expects to pay back significant amounts to the government.
As for IFU, it has been decided to pay back DKK 200m to the government in 2008. This means that IFU will have paid back DKK 950m in total to the government, or almost as much as the amount paid in over the years, i.e. DKK 1,050m. For IFU, as for IØ, the capital extraction is possible because of the very positive development in liquidity, especially as a result of a number of large share sales.
Altogether, by the end of 2008, IFU and IØ will have paid back more than originally paid-in.
You can find the IFU and IØ Annual Reports under Publications.