2009 was a busy year for Finnfund
19/04/2010
Finnfund’s operations continued to expand strongly in 2009. When the acute phase of the financial crisis was over, the economies of many developing countries, such as India, China and many African states, resumed their strong growth. Finnfund made a record number of new investment decisions last year, totalling 152 million euros. The investment portfolio increased almost 40 percent to 187.5 million euros. Despite challenging circumstances, the financial result was satisfactory and slightly better than the year before.
New investment decisions set record
Finnfund’s result for 2009 was a profit of 4.4 million euros. The result is slightly better than 2008 and satisfactory amid difficult operating conditions.
It was a year of strong growth for Finnfund. Thirty-two new investment decisions were taken, more than ever before in a single year and worth about 152 million euros. The main target countries included India, Russia and several African states. Russia was exceptionally important as nearly a fifth of the euro value of investment decisions was targeted at Russia.
Among projects financed by Finnfund were energy generation in Thailand and Uganda; processing of agricultural produce in Russia and Central America; modernisation of old industrial plant in Ukraine and India; and financing small-scale enterprise in Africa and Cambodia.
Disbursements for new projects totalled nearly 70 million euros, 67 percent up on the previous year. The number of disbursements last year was at a record level.
Income rise faster than expenses
Income from financing operations totalled 16.1 million euros, nearly half of which was interest income and just over half were dividends and various financing fees. Write-offs during the year totalled 6.1 million euros, about 3.3% of investment assets at the year-end. Interest expenses fell by a quarter from last year’s amount to 1.7 million euros, due to the low level of dollar short interest rates. Despite the strong growth of operating volume, operating expenses rose by only a moderate 6%.
Investment assets increased to 39% to 187.5 million euros. The share of loans and mezzanine instruments was 126 million euros (67.2%); equity investments were 25.2 million euros (13.4%); and fund investments were 36.3 million euros (19.4%).
More capital for expanding operations
In 2009 the State of Finland raised the share capital of Finnfund by 15 million euros, as it had done the year before. Another 15 million euros is reserved for a capital increase in this year’s government budget and a rise of the same magnitude is planned for 2011. These will give a solid foundation for the development of operations in the next few years.
Finnpartnership business partnership programme
Finnpartnership is a programme for promoting business partnerships, financed by the Ministry for Foreign Affairs and administered by Finnfund. It offers Finnish companies advice and economic support related to business operations in developing countries.
Business Partnership Support of 1.4 million euros was paid for 67 Finnish projects. 118 applications for support were received during 2009. Support worth 4.2 million euros was granted for 77 projects.
Finnpartnership’s matchmaking service forwarded 137 initiatives from companies in developing countries.
For more information, please contact:
Treasurer Jyrki Halttunen
tel. +358 9 3484 3318, +358 40 733 6075, jyrki.halttunen @ finnfund.fi
Managing Director, CEO Jaakko Kangasniemi
tel. +358 9 3484 3339, +358 40 577 7676, jaakko.kangasniemi @ finnfund.fi
Programme Director, Finnpartnership, Siv Ahlberg
tel. +358 9 3484 3329, +358 50 350 4307, siv.ahlberg @ finnpartnership.fi
