European Financing Partners S.A.
Region and country of operations: Developing countries, Finnfund will participate LMIC, LIC, LDC according to its financing policy
Jurisdiction of registration: Luxembourg
Business sector: Financial institution
Date of agreement (month/year): 7/2020
Finnfund’s financing: EUR 10,000,000
Share of Finnfund’s financing: max 4%
Environmental and social category: FI-A; depending on each underlying project
Names of companies financed by fund: n/a
Regions and countries of companies financed by the fund: Developing countries around the world. Finnfund will participate only to finance companies in lower-middle-income countries or lower categories according to the OECD DAC list.
Business sectors of companies financed by the fund: Multisector (e.g. financial intermediaries, manufacturing, agriculture, services, energy, infrastructure)
European Financing Partners (EFP), a joint venture between the European Investment Bank (EIB) and twelve European Development Finance Institutions (EDFIs), is a co-financing vehicle established in 2003 aiming at promoting sustainable development of the private sector and strengthening co-operation between eligible EDFIs and the EIB.
EIB’s financing is from the Cotonou Agreement Investment Facility for the African, Caribbean and Pacific Group of countries (ACP) which is based on the Cotonou Agreement of July 2000. This means that EIB will only participate projects in the ACP countries, whereas other shareholders of EFP can provide financing to countries included in the OECD DAC list.
In total EFP shareholders have committed nearly EUR 1.3 billion of financing over the years. This is a seventh round of commitments from the EDFI-members to EFP which is aimed at alleviating the consequences of the novel coronavirus disease (COVID-19) pandemic for the developing economies. Finnfund reactivates its participation in EFP with EUR 10 million commitment dedicated solely to combat the consequences of COVID-19 crisis.
Main development impact
EFP’s COVID-19 emergency financing is aimed at securing financing to healthy local companies speeding economic recovery, protecting jobs and contributing to host countries by paying taxes and other payments to local governments. Further, EDFI companies can improve E&S management and good corporate governance practices of the borrower companies, if and when required.