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How we invest

Finnfund invests in profitable business projects that advance sustainable development and are implemented by responsible businesses in developing countries.

We only invest in privately owned business. Our financing is always on market terms.

In order to be eligible for Finnfund investment, the project has to be implemented responsibly, target a developing country as defined by the OECD, generate measurable development impacts and be financially profitable.

We put special emphasis on sectors critical to sustainable development, namely clean energy, sustainable forestry and agriculture and financial institutions. We can invest in other sectors as well when projects match our investment strategy.

Tailor-made solutions

We tailor our financing to the needs of each investee. The financing can be in the form of equity, mezzanine financing or debt. Finnfund’s share in new companies is always smaller than the share of the project sponsor but can be greater in expansion investments. Ticket size varies from one million to 25 million euros. Finnfund financing can be in either euros or in US dollars.

Finnfund is always a minority shareholder and the terms of exit will be set in advance. Typically exit is implemented so that the project sponsor aquires Finnfund’s share in the company within 5 to 7 years.

Loans typically have long maturities varying from 5 to 10 years. Guarantees are defined based on the risk, amount of financing and other factors.

We tailor our loans to the specific needs of each project. Loans typically have long maturities varying from 5 to 10 years. Guarantees are defined based on the risk, amount of financing and other factors.

Contact us in project design phase

You can seek financing by sending us an informal application. For project appraisal, we will need a project plan developed by the client. We advise you to contact us already when designing the project as our experts have considerable experience on business operations in the developing markets.

We strive to keep our investment process swift and flexible. Investment decision is usually done within 3 to 4 months from first contact. Final investment decisions are taken by the Finnfund Board which meets once a month.

 

 

Finnfund invests only in developing countries as defined by the OECD

Project plan

For project appraisal, we need a project plan developed by the client. Read more for instructions.

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Investment process

Finnfund selects its investees through a careful but smooth process.

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