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Finnfund Update for Investors
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Dear all,
A lot has changed during recent weeks. It is yet difficult to foresee all the impacts the war in Ukraine will have on the economies and living conditions in developing and emerging countries. A new food crisis is a possibility.
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While the war in Europe is getting most of our attention, also the COVID-19 pandemic continues to spread and evolve, particularly where vaccination levels are low.
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For Finnfund, the impacts have been mixed. In terms of our financial returns, write-downs related to wars in Ukraine, Ethiopia, and Myanmar took their toll, but with our strong balance sheet and continued support from our owner, we will weather the crisis.
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Simultaneously, our ability to make new investment decisions and deploy capital to countries and projects in need was not destroyed by the turmoil or the travel restrictions, but instead continued at record levels. We made 28 new investment decisions, helping new and old clients to create jobs, produce very much needed goods and services while mitigating climate change or helping people to adapt to whatever they are facing. We intend to share the details in April when we publish our Annual Report for 2021.
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Since the beginning of this year, we have also taken a few very important steps I wish to share with you:
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Despite the somewhat gloomy situation around us, I am convinced that we have exciting and good times ahead of us. For us as a development financier and impact investor, having difficult times also means that our contribution is strongly needed. We at Finnfund strive to stay at the frontline of the global effort to build back better.
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Jaakko Kangasniemi
Managing Director, CEO, Finnfund
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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.
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New strategy!
More impact, more private capital - and a carbon net-negative investment portfolio. We launched a new strategy and set our operational guidelines until 2025. Interested to know more?
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Finnfund will open its first regional office in Nairobi, Kenya, in May 2022. The newly released strategy places a strong emphasis on Africa, with half of Finnfund’s upcoming investments in Africa. Local presence is seen as a key factor for growing the volume of investments in the region. Read more
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OP Finnfund Global Impact Fund I invests in d.light to provide energy access to millions of people
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OP Finnfund Global Impact Fund I makes a 7 million US dollar equity investment in d.light, a leading innovator of solar energy products. Read more
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“Among the best-performing organisations”
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An external review of Finnfund’s Human Rights Statement and its implementation, conducted by Pillar Two, is ready. The review consisted of two parts: a benchmarking exercise and a gap analysis. Read more
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Expertise and enthusiasm – Pertti Nurmio has brought external perspective to Finnfund’s investment committee
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“I have found the diversity and complexity of Finnfund’s business professionally very rewarding,” says Pertti Nurmio, the first external member of Finnfund’s investment committee in the interview. Read more
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OP Finnfund Global Impact Fund I joins a group of investors supporting India’s leading MSME lending platform Indifi
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OP Finnfund Global Impact Fund I, the first Finnish global emerging markets impact fund, and CX Partners, along with three existing investors, have invested 19 million US dollars in Indifi Technologies, a digital financial services company based in Gurgaon, India.
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Keep up the good work – stakeholder survey provides feedback and ideas on Finnfund’s operations
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Finnfund conducted a stakeholder survey to collect feedback and ideas from various stakeholders. The aim was to gather information, for instance, on brand image, strengths and weaknesses, as well as to ask stakeholders how they see the changes in the operational environment and what are their expectations for Finnfund. Read more
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We are biodiversity
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BLOG – "Biodiversity has risen to the current sustainability discussions alongside climate change mitigation and climate change adaptation. It is increasingly clear that biodiversity risks are material and relevant to businesses both in developing countries and in the developed world," writes Seela Sinisalo, our former Senior Environmental and Social Adviser. Read more
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Client protection in microfinancing is part of financial inclusion
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BLOG – "Microfinance is an instrument to help people engage in income-earning activities and increase financial resilience against unexpected crises. It is expected to contribute to social and human development and to enhance empowerment, especially of women. However, if not well structured and managed, microfinance may also have negative impacts," writes Riikka Thomson, Manager, Environmental and Social.
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Voices of the employees – piloting a video survey in Zambia
CASE STORY & VIDEO – “I think one of the most neglected aspects in many companies is understanding where you are coming from,” says Kunda Ndashe.
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Ndashe used to work as the Environmental, Social, Quality Assurance and Fish Health Manager at Yalelo, the leading aquaculture company in Zambia. Last year, Yalelo, together with Finnfund, conducted a survey to collect feedback from Yalelo employees.
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“In addition to work-related questions, we wanted to better understand if and how the job can contribute to the wellbeing of the whole family,” says Kaisa Alavuotunki, Director, Impact and Sustainability, at Finnfund.
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The survey was conducted across a representative sampling of Yalelo’s staff in the cities of Lusaka, Siavonga, and Kitwe. The key idea was to give people a chance to give feedback and share their ideas directly and anonymously. How did it all go? And what was considered as the most important question?
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Even if you never stopped, it's time for a restart
BLOG – "What a year it’s been – the global pandemic has not been easy for many – but, whilst my colleagues were stuck at working from home, I was fortunate enough to be expanding my network across the developing world through the MBA programme at Oxford’s Saïd Business School.
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With the world slowly opening up, it’s time for both individuals and businesses to think about how to get the most out of this forced restart. For me, this means taking on new challenges while at the same time hoping to be able to visit our investee companies in person again," writes Noah Law, Investment Manager at Finnfund.
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Did you know... OP Finnfund Global Impact Fund I is the first global emerging markets impact fund in Finland
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OP Finnfund Global Impact Fund I targets significant positive impacts on, for instance, climate change, food security, gender equality and the availability of financing in addition to financial return. The fund focuses on three main industries in developing countries: renewable energy, financial institutions, and sustainable agriculture. The total fund size stands at 135 million euros. Read more
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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 1.070 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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