Finnfund’s investment portfolio reaches EUR 887 million – more focus on advancing digitalisation, mobilisation of private capital, and Finnish added value

“For Finnfund, 2024 was a year of rethinking. We revisited our strategy while reaffirming our development mission,” says Jaakko Kangasniemi, Finnfund CEO and Managing Director.

Finnfund, a Finnish development financier and impact investor, has published its Annual Report 2024. The report collates key information about Finnfund’s financial performance, sustainability, and impact, while sharing highlights and insights from last year.

In 2024, Finnfund’s investment portfolio grew from EUR 830 million to EUR 887 million. At the end of the year, the investment portfolio, commitments, and investment decisions totalled 1.3 billion euros.

Finnfund met its target for new investments, making 26 new investment decisions totalling EUR 226 million. Of this, EUR 124 million were allocated to climate change mitigation and/or adaptation and resilience projects. As such, Finnfund is on track to meet its commitment to make one billion euros worth of new investments in climate finance by 2030

Profit for the year totalled EUR 10.7 million, and all of it will be used to make new investments.

"Reflecting the global situation, the outlook in the developing and emerging markets is somewhat cloudier than it was a year ago. Recognising the challenges, we have raised the bar for our riskiest investments, and we have further developed our risk management and portfolio monitoring."

Jaakko Kangasniemi, CEO and Managing Director, Finnfund

Moving ahead with a renewed strategy

The updated strategy extending to 2027 emphasises three key areas: digitalisation; climate and nature; and local growth, decent jobs and livelihoods. The new strategy also commits the company to supporting Ukraine’s reconstruction, strengthening cooperation with Finnish businesses and institutional investors both in Finland and abroad.

These themes were also reflected in the development priorities. For example, the company adopted its first Nature and Biodiversity Statement, while also developing the Planetary Boundaries Investing Framework. For the first time, Finnfund also applied for an external credit risk rating, and begun establishing a new equity fund that will focus on digital solutions and infrastructure.

“Reflecting the global situation, the outlook in the developing and emerging markets is somewhat cloudier than it was a year ago. Recognising the challenges, we have raised the bar for our riskiest investments, and we have further developed our risk management and portfolio monitoring,” Kangasniemi says.

“Some of our investee companies will face challenges due to predicted economic and political turmoil, but most of them are making great progress. In most countries and most sectors, well-managed businesses

will have positive impacts, allowing more and more people to live happier, healthier, and more productive lives,” he continues.

Jobs, financial inclusion, climate action, digitalisation – and much more

The Annual Report also collates the latest information (for 2023) about the impact and sustainability of Finnfund’s investment activities at the portfolio level.

In 2023, the companies funded, in part, by Finnfund, for example:

• supported a total of 304,000 jobs, 40% of which were women,
• generated a total of 9,600 gigawatt hours of energy,
• cooperated with 4.5 million smallholders, 79% of whom were women,
• granted 9.1 million loans (totalling EUR 13.3 billion) to micro, small, and medium-sized enterprises, and
• provided digital services and infrastructure to 203 million people.

In addition, Finnfund’s investments sequestered 303,000 tCO₂, which is equivalent to 5137 tCO₂e per outstanding million in removal projects. This is the share attributed to Finnfund in accordance with its funding share. The sequestered amount is significantly higher than the similarly attributed emissions – 175,000 tCO₂ and 254 tCO₂ per outstanding million – of the companies financed by Finnfund. Avoided emissions totalled 126,000 tCO₂.

“Volatile times highlight the importance of collaboration, and mastering the craft of development impact is always a team play. I wish to thank all our customers, staff members, and other stakeholders for the support”, concludes Kangasniemi.

Read more in Finnfund’s Annual Report at Annual Report 2024 – Finnfund

More information:

Jaakko Kangasniemi, CEO, tel. +358 (0)40 577 7676, jaakko.kangasniemi@finnfund.fi
Kirsi Pere, Communications Manager, tel. +358 (0)40 620 9767, kirsi.pere@finnfund.fi (media contacts)