Finnfund Update for Investors

May 2021
Photo of Valle Solar Park in Honduras

Dear all,

This is Finnfund’s first newsletter to our financiers, fellow investors and other stakeholders.

We are living in strange times: the COVID-19 crisis has and will continue to extensively affect our working environment. Through this newsletter, we aim to provide you with a better insight into Finnfund’s operations, our key markets and future prospects.

I put together some thoughts as a blog post to recap our Q1. Should you have no time to read the full text, the key points are as follows:

    Olli Sinnemaa
    • Finnfund had an active start for the year 2021: 11 new investment decisions were made, worth of 105 million euros. We also managed to make a great number of disbursements and our portfolio grew by 20 million, 3.3%, reaching 628 million euros.
    • We launched a new key sector to support our strategic goals: Digital Infrastructure and Solutions. Finnfund is the first Development Finance Institution (DFI) to put special emphasis on this sector. We are proud of this new initiative, and I strongly believe that it strengthens our position as one of the forerunners among the European development financiers and impact investors. Access to internet plays a crucial part in fostering equality and inclusivity.
    • Financial performance in Q1 was satisfactory: our net financial income increased 34% (EUR 3.8 million vs. EUR 2.8 million). Operational expenses remained under control being 7% higher compared to previous year but 5% lower compared to the budget. The profit was 598,000 euros (EUR -1.7 million).
    • The outlook for financial year 2021 remains the same as previously expected. Although the beginning of the year was good, origination of new investments will be increasingly challenging if the global travel restrictions are kept in place. We are seeing an increasing amount of COVID-19 infections in our target countries, and unfortunately vaccinations are only starting to take off. It is still unclear if we can travel this year, and that obviously puts pressure to our origination team as well to the portfolio management.
    • Last but not least, Finnfund's Annual Report has been published. Year 2020 presents a mixed picture: In financial terms, the year turned out to be the worst and the best in recent history. Read the full story behind the figures here.
    We have had a great start for the year, and despite the fact that the future remains unclear, I am hopeful. We at Finnfund are at the frontline of the global effort to build back better.

    Olli Sinnemaa
    CFO, Finnfund

    P.S. We wish you find this quarterly newsletter useful. Should you wish to receive this newsletter in the future, due to the GDPR restrictions, you must subscribe by clicking the button below. You can unsubscribe at any time by clicking the link at the end of this letter. website or contact us. Happy to discuss more!

    Investment decisions and disbursements in Q1/2021

    Taulukko valk

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    Finnfund logo
    Finnfund is a Finnish development financier and professional impact investor. We build a sustainable world by investing in responsible and profitable businesses in developing countries. Each year we invest 200–250 million euros in 20-30 projects, emphasising renewable energy, sustainable forestry, sustainable agriculture and financial institutions. Today Finnfund’s investments and commitments total about 1,07 billion euros, half of them in Africa. The company has about 90 employees. For more information, please visit www.finnfund.fi
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