Growth in investment operations in 2001
Growth in investment operations in 2001
30/04/2002
Press release, embargoed till 30 April 2002
Finnfund produced a satisfactory result in 2001; its profit before changes in reserves was 4.6 million euro, which is equivalent to a return on equity of about five percent. The profit before appropriations was slightly weaker than the year before, mainly as a result of the lower interest rate level and lower capital gains on sale of investments. Because of the uncertain state of the world economy the profit was transferred almost entirely into reserves. The profit after appropriations was 0.7 million euro.
The balance sheet total of 146 million euro was about five percent more than the year before. The company’s liquidity and capital adequacy remained excellent.
Disbursements for new projects totalled 17 million euro and the value of the investment portfolio increased 15 percent to 80.3 million euro. The value of new financing commitments was 26.5 million euro. At the end of the year, undisbursed investment commitments were 88.9 million euro.
Financing operations in 2001
Finnfund made ten new investment commitments in 2001, totalling 26.5 million euro. The value of undisbursed investment commitments at the year-end was 89 million euro. Disbursed loans and equity investments at the year-end were 80.3 million euro, consisting of 51 million euro in loans and 29.3 million euro in equity investments.
Eighty percent of Finnfund’s investments (64.1 million euro) were in developing countries and twenty percent (16.2 million euro) in Central and Eastern Europe. The proportion of developing countries in the investment portfolio was slightly higher than in the year before. Finnfund is financing projects in China, Malaysia, Turkey, the Dominican Republic and Tanzania, among others.
At the end of 2001 Finnfund had 16 commitments in effect to invest in funds. Twelve of these funds had begun operations and Finnfund’s investment in them at the end of the year was 12 million euro. The funds’ operating areas include Latin America, Turkey and Thailand.
Apart from its financing operations, Finnfund manages the Wärtsilä Power Investment fund and participates in the Board of Directors of CFA, which invests in Central America, and Norsad, which invests in Southern Africa.
Finances in 2001
Finnfund’s result before appropriations in 2001 was 4.6 million euro, which is equivalent to a return on equity of five percent. The result is satisfactory although it was less than the year before. The lower interest rate level (for the euro and, even more so, the dollar) reduced profit. Capital gains on sale of equity investments, which is important for the result, totalled 1 million euro, which is considerably less than for several years.
Total interest income was 7.9 million euro, which is roughly the same as the year before. Dividend income (0.4 million euro) was less than the year before.
Aggregate write-downs and credit losses were 0.9 million euro, which is about one percent of the value of total investment assets at the year-end. This level of write-downs and credit losses is normal in Finnfund’s operations.
Total assets at the end of 2001 were 146.4 million euro, growth of five percent from the previous year. Capital adequacy was very high at 68 percent (68 % at the end of 2000, too). Liquidity was also excellent, averaging 61 million euro at the year-end.
The Finnish Fund for Industrial Cooperation Ltd. is a specialist financial institution that finances enterprises operating in developing countries and transitional economies and in which there is a Finnish interest. Finnfund’s shareholders are the State of Finland, Finnvera Plc. and the Confederation of Finnish Industry and Employers.
Inquiries:
Mr. Jyrki Halttunen, Assistant Director tel. +358 0 3484 3318
