Finnfund approved 31 million euros in new investments
10/01/2003
Finnfund's Board of Directors approved 13 new investments, totaling 31 million euros.
In 2002, Finnfund's Board of Directors approved 13 new investments, totaling 31 million euros. While China continues to be the single most important host country for investments, many of them in electronics manufacturing, Finnfund also broke new ground by making its first-ever investment decision to Brazil, Cuba and South Africa.
In terms of financing instruments there was a clear shift from equity investments in general and fund investments in particular to long-term investment loans. Approximately two-thirds of the total of 31 million euros consisted of loans.
Due to long investment periods of several investments and investment funds, disbursements were well below approvals at 15,3 million euros. Approximately 10,3 million euros consisted of equity investments and investment funds, with the remainder going to loans. The share of investment funds in the disbursed investment portfolio was about 20 % at the end of 2002.
During 2002, Finnfund sold, fully or partially, three of its equity investments.
Due to difficulties in a number of developing economies and low interest rates, 2002 was a challenging year for Finnfund. In comparison with several recent years, Finnfund`s financial performance weakened in 2002.