Finnfund’s investment portfolio grew up to 780 million euros

Finnfund, a Finnish development financier and impact investor, has published its Annual Report for 2021. Despite the challenging situation, investment activities maintained at a high level. At the end of the year, Finnfund’s investment portfolio stand at EUR 780 million.

”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, CEO, Finnfund.

At the end of the year Finnfund’s investments, commitments, and investment decisions totalled about 1.12 billion euros, half of them in Africa. Net profit was negative particularly due to the COVID-19 pandemic and conflicts in several countries, such as Ethiopia, Myanmar, and Ukraine. In 2021, Finnfund made 28 new investment decisions, totalling 241 million euros. 98% of the new investment decisions targeted countries in three lowest income categories by OECD DAC.

”We have also taken significant steps in our impact and sustainability work. In spring 2021, we reported a carbon net negative investment portfolio – probably as the first development financier in the world. In our new strategy we also commit to keep it that way,” Kangasniemi adds.

At the end of the year, Finnfund adopted a new strategy, setting operational guidelines until 2025. The strategy contains three key strategic objectives: double total impact from 2020 to 2025, increase the share of private capital up to 50% in our investments by 2030, and maintain a carbon net negative portfolio.

In addition, Finnfund decided to establish its first regional office in Nairobi, Kenya. The regional office will open in early summer.

Key figures:

• Portfolio EUR 780 million (investment portfolio at acquisition cost)
• Investments, commitments, and investment decisions EUR 1.12 billion
• Net profit EUR -20 million
• 28 new investment decisions, EUR 241 million in total
• 98% of new investment decisions (EUR) targeted at countries in three lowest income categories by OECD DAC
• Portfolio annual net emissions -177 136 tCO2e (in 2020)
• 83 000 direct jobs, of which 34% for women (in 2020)
• 6300 GWh of clean energy (in 2020)

Read Finnfund’s Annual Report 2021 at Annual report 2021 – Finnfund
Watch Recap of the year 2021 video at Recap of the year 2021 – YouTube

More information:
Jaakko Kangasniemi, Managing Director, CEO, tel. +358 40 577 7676, jaakko.kangasniemi@finnfund.fi
Kirsi Pere, Communication Manager, tel. +358 40 620 9767, kirsi.pere@finnfund.fi (media contacts)

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 https://www.finnfund.fi/en/