Finnfund to participate a European financing package to support COVID-19 impacted businesses

Finnfund, a Finnish development financier and impact investor, invests EUR 10 million in a financing scheme of eleven members of EDFI, the Association of European Development Finance Institutions, and the European Investment Bank (EIB) to reduce negative impacts of the COVID-19 pandemic on economy and employment in developing countries.

The financing package of EUR 280 million initiative in total, will be channelled through the existing European Financing Partners (EFP) scheme. The funding is aimed to support financial institutions and businesses in developing countries and ensure continued business investment.

”The COVID-19 crisis has been an unprecedented shock to many businesses in developing countries. As a development financier, we are actively seeking means to support innovative, viable businesses through the crisis. In developing countries, the jobs and services provided by private companies play a significant role in building the resilience. Through this European cooperation we can pool resources and channel funding in an efficient way both via financial institutions and directly to companies,” said Finnfund’s Investment Manager Ulla Huotari.

Finnfund has participated European Financing Partners scheme since its launch in 2003. Since its launch, the partnership has supported sustainable private sector investment in 43 projects, with a total value of EUR 590 million. Forty percent of this financing so far has been allocated to financial intermediaries, and infrastructure and agribusiness represent other key sectors.

Read more about the initiative European bilateral development finance institutions and EIB launch EUR 280 million financing initiative to support Covid-19 impacted business

More information:
Investment Manager Ulla Huotari, tel. +358 50 594 2296, ulla.huotari@finnfund.fi
Communications Manager Kirsi Pere, tel. +358 40 620 9767, kirsi.pere@finnfund.fi

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 957 million euros, half of them in Africa. The company has about 90 employees. For more information, please visit http://www.finnfund.fi/