|
|
Finnfund Update for Investors
|
|
|
|
|
Dear all,
Last months have been full of devastating news from Ukraine. Simultaneously, we have witnessed how the COVID-19 pandemic has continued to keep the world on its toes.
|
Finnfund’s Annual Report 2021 has been published, and I believe it is fair to say, that resilience is probably the word that best describes last year. Unfortunately, it looks like resilience will be needed this year as well: the resilience of people in pandemic lockdowns, and in political and market turbulence, and the resilience of the planet in climate turmoil.
|
In 2021, the strength and unexpected longevity of the COVID-19-pandemic significantly affected our activities and projects all over the world for another consecutive year.
|
|
|
|
On the other hand, some of our investee companies expanded their operations and created new jobs in the middle of the pandemic.
|
Despite limited abilities to travel to our project countries, we put our best efforts into monitoring, supporting, and collaborating with and for our investment community and other partners. Therefore, I am happy to say, that we did not miss the beat. Finnfund held its course and was able to maintain its investment activity at a high level, aligned with its mission. In addition, we took significant steps in our sustainability and impact work.
|
This continued throughout Q1, as you may read on this blog post and below. As always, through this newsletter we wish to share with you, dear friends and colleagues, our latest news.
|
It is difficult to foresee what lies ahead of us. However, despite global, regional, and national crises and political turmoil in many parts of the world, the news from some countries are very positive and we expect the year 2022 to be a good one for Finnfund. We will continue to invest where we are needed the most.
|
Dear friends, I invite you to explore our Annual Report, which covers our key figures, highlights, and latest developments – or if you are in a hurry, to watch this recap video.
|
Jaakko Kangasniemi
Managing Director, CEO, Finnfund
|
|
P.S. We wish you find this quarterly newsletter useful. Should you wish to receive this newsletter in the future but have not yet joined our subscribers, please click the button below. You can unsubscribe at any time.
|
|
|
|
|
|
|
|
Investment decisions and disbursements in Q1/2022
|
|
|
|
|
|
|
|
Finnfund has published its Annual Report for 2021. Despite the challenging situation, investment activities maintained at a high level. Finnfund’s investment portfolio stood at EUR 780 million at the end of the year.
|
|
”It was a challenging year. The COVID-19 crisis and political turmoil affected many countries we invest in as well as the markets. As a development financier, our mission is to be there where we are needed most. We were able to maintain our investment activity at a high level and exceeded our investment targets both in numbers and volume,” said Jaakko Kangasniemi, Finnfund CEO.
|
|
|
|
|
|
|
|
CFO insight into Q1: An active start for 2022
|
|
The first quarter of the year was marked by the Russia’s war in Ukraine as well as the continuous fight against the COVID-19 crisis and challenges in many markets. Despite the challenging situation, Finnfund had an active start of the year. Read more
|
|
|
|
|
Finnfund has made a USD 10 million debt facility commitment to Valency International Trading SARL, a Valency International Group company. With the funding provided by Finnfund, the company is setting up a new state of the art cashew processing plant in Côte d’Ivoire and expected to become a leading cashew kernel processor in the country. Read more
|
|
|
|
|
|
Finnfund’s 3 million US dollar equity investment expands the insurance industry in Pakistan
|
Finnfund has made a 3 million US dollar equity investment in TPL Insurance Limited, Pakistan’s first direct insurance company. The investment will enable TPL Insurance to introduce innovative and tech-driven products, such as yield-based crop and livestock insurance, as well as women-specific insurance programs, thereby increasing the penetration of insurance in Pakistan in diverse segments. Read more
|
|
|
|
|
|
Kristiina Karjanlahti: "The Ukraine price shock will be felt globally and hit the income of the poorest"
|
|
The Ukraine crisis is a devastating humanitarian catastrophe. Its economic ramifications will be felt across the globe through slowing growth and higher inflation following rising energy and food prices. While the magnitude and duration of the impact remain highly uncertain, especially the surging food prices will hit hardest the real incomes of the poorest people in developing economies," comments Kristiina Karjanlahti, Finnfund’s new Lead Economist. Read more
|
|
|
|
|
|
OP Finnfund Global Impact Fund I invests in d.light to provide energy access to millions of people
|
|
OP Finnfund Global Impact Fund I makes a 7 million US dollar equity investment in d.light, a leading innovator of solar energy products. This latest funding will enable the expansion of the company’s solar and Pay-Go consumer finance business in Africa. Read more
|
|
|
|
|
|
Getting together again – EDFI spring meeting brought E&S and impact specialists to Helsinki
|
|
European development finance institutions’ (EDFI) E&S and Impact Spring meeting brought both environmental & social sustainability and impact specialists together on 25-27 May in Helsinki. The meeting consisted of three days full of discussions and knowledge sharing on climate change policies and practices in mitigation and adaptation, biodiversity, human rights, impact management, and so forth. Read more
|
|
|
|
|
|
DFIs pledge to enhance collaboration in support of infrastructure development
|
|
The leaders of more than 15 Development Finance Institutions (DFIs), including Finnfund, gathered to affirm their commitment to transparent and sustainable private sector investment in priority sectors essential to development. Read more
|
|
|
|
|
|
Preparing for a successful exit: Sustainability should translate into a premium
|
BLOG – "A successful exit requires thorough understanding of the current trading of the investee and its future business prospects. Ideally, a new investor should bring in something new that the incumbent owners don’t possess. This can be experience on scaling-up similar businesses in other geographies, large financial or human resources, industry expertise, good brand or something else laying favourable grounds for future growth and operations," says Mikko Kuuskoski, Associate Director at Finnfund.
|
|
|
|
|
|
|
|
Fast-growing agribusiness companies in Africa excel in resilience, innovation and harnessing technology to increase productivity
|
BLOG – "It’s been two years since Finnfund, FMO and IFC arranged the first ever African Cheetahs event, bringing together the Cheetahs, executives of Africa’s most promising, fast-growing agribusiness companies. So much has changed since then," writes Johanna Raehalme, Head of Finnfund's Nairobi office.
|
|
|
|
|
|
|
|
|
Stakeholders’ voice – using technology to collect feedback directly from the key people
ARTICLE – “The world has now lived with the Covid-19 pandemic for over two years. The evidence shows that it has hit the least-developed countries the hardest. At the same time, climate change is increasingly affecting peoples’ daily lives. Again, those already in vulnerable positions are suffering the most. In this milieu, there is a need to understand the roles and impacts of companies, and the development financiers and investors backing them, on peoples’ lives. New digital tools are making this possible,” writes Anne Arvola, Senior Development Impact Adviser at Finnfund.
|
|
In this article published by Private Sector and Development magazine, Arvola discusses how technology can be used to collect impact data and feedback directly from stakeholders.
|
|
|
|
|
|
|
|
Listen to your stakeholders
BLOG – "In order to make good, smart decisions, we must have a thorough understanding of the changes in our operational environment and listen to our key people," writes Kirsi Pere, Communications Manager at Finnfund.
|
|
"This was the main idea when we started to work on our stakeholder survey. We wanted to know what our key people – such as our owners and other financiers, investee companies, co-financiers, civil society, political decision-makers, media, and other influencers both in Finland and abroad – think about our work."
|
|
|
|
|
|
Finnfund's investment portfolio is carbon net-negative
Finnfund’s portfolio net emissions are negative. In absolute and aggregate terms, In 2020, Finnfund’s investments removed 177 136 tCO2 more from the atmosphere than they emitted.
|
|
|
Interested to know more?
|
|
|
|
|
Finnfund is a Finnish development financier and impact investor. We build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges. We invest 200–250 million euros in 20–30 companies in developing countries each year. Our focus sectors include renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions. Today Finnfund’s investments, commitments, and investment decisions total about 1.12 billion euros, half of them in Africa. The company has 90 employees. For more information, please visit www.finnfund.fi
|
|
   
|
|
|
|
|
|
