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Finnfund Update for Investors
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Dear all,
This is Finnfund’s first newsletter to our financiers, fellow investors and other stakeholders.
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We are living in strange times: the COVID-19 crisis has and will continue to extensively affect our working environment. Through this newsletter, we aim to provide you with a better insight into Finnfund’s operations, our key markets and future prospects.
I put together some thoughts as a blog post to recap our Q1. Should you have no time to read the full text, the key points are as follows:
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- Finnfund had an active start for the year 2021: 11 new investment decisions were made, worth of 105 million euros. We also managed to make a great number of disbursements and our portfolio grew by 20 million, 3.3%, reaching 628 million euros.
- We launched a new key sector to support our strategic goals: Digital Infrastructure and Solutions. Finnfund is the first Development Finance Institution (DFI) to put special emphasis on this sector. We are proud of this new initiative, and I strongly believe that it strengthens our position as one of the forerunners among the European development financiers and impact investors. Access to internet plays a crucial part in fostering equality and inclusivity.
- Financial performance in Q1 was satisfactory: our net financial income increased 34% (EUR 3.8 million vs. EUR 2.8 million). Operational expenses remained under control being 7% higher compared to previous year but 5% lower compared to the budget. The profit was 598,000 euros (EUR -1.7 million).
- The outlook for financial year 2021 remains the same as previously expected. Although the beginning of the year was good, origination of new investments will be increasingly challenging if the global travel restrictions are kept in place. We are seeing an increasing amount of COVID-19 infections in our target countries, and unfortunately vaccinations are only starting to take off. It is still unclear if we can travel this year, and that obviously puts pressure to our origination team as well to the portfolio management.
- Last but not least, Finnfund's Annual Report has been published. Year 2020 presents a mixed picture: In financial terms, the year turned out to be the worst and the best in recent history. Read the full story behind the figures here.
We have had a great start for the year, and despite the fact that the future remains unclear, I am hopeful. We at Finnfund are at the frontline of the global effort to build back better.
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Olli Sinnemaa
CFO, 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, due to the GDPR restrictions, you must subscribe by clicking the button below. You can unsubscribe at any time by clicking the link at the end of this letter. website or contact us. Happy to discuss more!
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Investment decisions and disbursements in Q1/2021
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How did our 2020 go?
Finnfund's Annual Review is now available.
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Finnfund first development financier to report carbon net-negative investment portfolio
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Finnfund released data showing that its total investment portfolio has a net negative carbon balance. The figures for 2019 indicate that Finnfund’s investments removed 134,679 tCO2e more than they emitted.... Read more
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Finnfund invests in Uhuru Growth Fund I to foster growth of West African businesses
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Finnfund invests in Uhuru Growth Fund I to foster growth of West African SME and middle market businesses operating in the consumer-facing & financial services sectors... Read more
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Norsk Solar and Finnfund establish unique financing platform for impact investing in developing countries
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Finnfund established a a joint Investment Company with Norsk Solar, a fully integrated independent solar power producer... Read more
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Finnfund invests in ADP III to foster growth and development of African businesses
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Finnfund announced a USD26 million commitment to African Development Partners III, a pan-African private equity fund aiming to foster the growth and development of African consumer focused businesses across the continent... Read more
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CDC and Finnfund invest in microfinance pioneer to drive women entrepreneurship in Pakistan
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CDC Group and Finnfund have provided a MUSD25 senior unsecured loan facility to Kashf Foundation, one of the leading microfinance institutions in Pakistan…
Read more
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Finnfund increases funding to Starsight, a leading C&I solar player in West Africa
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Finnfund and Norfund have increased their senior debt facility to Starsight from MUSD10 to MUSD20. Starsight is the leading Commercial and Industrial solar power provider in West Africa.
Read more
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Creadev, Finnfund and Imaginable Futures support SPARK Schools in its mission to revolutionize Africa K-12 education
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Finnfund invests MUSD5 in SPARKS Schools, the 3rd largest network of private K-12 schools in South Africa.… Read more
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Finnfund invests in Phatisa Food Fund II
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A group of leading development finance institutions (DFIs) and impact investors – CDC Group, Norfund, Finnfund, FinDev Canada and BIO – announce an MUSD82 joint commitment to Phatisa Food Fund 2.... Read more
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Seeking significant positive impacts in addition to financial return
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BLOG – "OP Finnfund Global Impact Fund I is the first global emerging markets impact fund in Finland. The fund targets significant positive impacts on, for instance, climate change, food security, gender equality and the availability of financing. As someone who has been keeping a close eye on the global impact investment market, I foresee substantial growth in impact investing in the coming years," writes Markus Pietikäinen, Finnfund’s CIO.
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"The great digital divide – investing in access, inclusivity, and equality"
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BLOG – Connecting the unconnected. Our economist Minna Kuusisto explains the story behind Finnfund's new key sector: Digital Infrastructure and Solutions.
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Did you know... Theories of Change are at the core of our impact assessment
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Finnfund assesses and monitors development impacts of its investments throughout the life cycle. Theories of Change are the basis for our development impact assessment. 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 1,07 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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