Investment Fund for Developing Countries

Investment Fund for Developing Countries (Investeringsfonden for Udviklingslande) (IFU), is a Development Financial Institution owned by the Government of Denmark. IFU is a self-governing, state-owned fund, whose objective is to promote economic and social development in developing countries. The Fund provides risk capital and advice to companies wanting to do business in parts of Europe, Asia, Latin America and Africa.[2]

Investment Fund for Developing Countries
Native name
Investeringsfonden for Udviklingslande (IFU)
TypeParastatal
IndustryDevelopment Finance
Founded1967 (1967)
HeadquartersCopenhagen, Denmark
Key people
Michael Rasmussen
Chairman[1]
Torben Huss
Chief Executive Officer[1]
ProductsEquity Financing, Advisory Services, Loans, Consulting
Websitewww.ifu.dk/en/

Investments are made on commercial terms in the form of loans and equity, with the purpose of contribution to economic and social development in the investment countries and support the attainment of the United Nations Sustainable Development Goals.[3]

Location

The headquarters and main offices of IFU are located at Fredericiagade 27, 1310 Copenhagen K, Denmark.[4] The geographical coordinates of the company headquarters are:55°41'08.9"N, 12°35'24.5"E (Latitude:55.685806; Longitude:12.590139).[5] IFU also maintains regional offices in Africa, Asia, Latin America, Central and Eastern Europe.[2]

As of August 2020, IFU maintained regional offices in these cities: 1. Copenhagen 2. Accra 3. Ho Chi Minh 4. Kyiv 5. Lima 6. Nairobi 7. New Delhi 8. São Paulo 9. Shanghai 10. Singapore.[4] (Near bottom of reference page).

Overview

IFU was founded in 1967, as an independent government-owned fund offering advisory services and risk capital to companies wishing to do business in developing countries and emerging markets. In addition to investing its own money, IFU acts as a fund manager. As of August 2020, IFU had co-invested in over 1,300 companies in more tan 100 countries. The investment portfolio totals DKK:209 billion (€29.07 billion), to which IFU as contributed DKK:23 billion (€3.09 billion).[3]

Before 31 December 2016, IFU’s involvement was tied to the participation of a Danish company or the existence of a Danish interest. That requirement was dropped in December 2016. IFU does not provide business grants or development aid. Over time the investments have returned good results to the countries hosting the investments, the Danish companies and to IFU. In the 2014 to 2019 time period, gross yields on invested share capital averaged in excess of 12 percent annually.[2][3]

Ownership

Investment Fund for Developing Countries is 100 percent owned by the government of Denmark.[2][3]

Governance

Michael Rasmussen serves as the chairman of the company. Effective 1 January 2019, Torben Huss is the chief executive officer of Investment Fund for Developing Countries.[1]

Recent investments

IFU is an equity investor in Lake Turkana Wind Power Station, a 310 megawatts power plant, that is Africa’s largest wind farm. It supplies approximately 15 percent of Kenya's electricity needs.[6][7]

IFU owns 9.97 percent of DFCU Bank, the fifth-largest commercial bank in Uganda. The shareholding was acquired in December 2019 from the CDC Group of the United Kingdom.[8]  

In In March 2019, the Investment Fund for Developing Countries (IFU), lent KSh:1.2 billion (approx. US$11.2 million) to Sidian Bank, a Kenyan commercial bank. During the next 36 months, IFU has the option to convert a portion or all of the principal into share capital in the bank. If all the principal is converted into capital, the Fund will acquire 20 percent shareholding in the bank and gain two seats on the expanded seven-person bank board. Each of the other shareholders will be diluted proportionately.[9]

See also

References
  1. Investment Fund for Developing Countries (10 December 2018). "Torben Huss Is New CEO of IFU". Copenhagen: Investment Fund for Developing Countries. Retrieved 18 August 2020.
  2. Devex (August 2020). "Profile of Investment Fund for Developing Countries (IFU) - Denmark". Washington, DC: Devex.com. Retrieved 18 August 2020.
  3. Investment Fund for Developing Countries (18 August 2020). "About IFU". Copenhagen: Investment Fund for Developing Countries. Retrieved 18 August 2020.
  4. Investment Fund for Developing Countries (August 2020). "Location of the Headquarters of IFU". Copenhagen: Investment Fund for Developing Countries. Retrieved 18 August 2020.
  5. Google (18 August 2020). "Location of the Headquarters of IFU" (Map). Google Maps. Google. Retrieved 18 August 2020.
  6. Boris Ngounou (23 July 2019). "Kenya: Government unveils Africa's largest wind energy project". Paris: Afrik21.africa. Retrieved 18 August 2020.
  7. Investment Fund for Developing Countries (August 2020). "Africa's Largest Wind Farm". Copenhagen: Investment Fund for Developing Countries. Retrieved 18 August 2020.
  8. Martin Luther Oketch (19 December 2019). "CDC sells its stake in dfcu Bank". Daily Monitor. Kampala. Retrieved 18 August 2019.
  9. Patrick Alushula (8 March 2019). "Danish fund acquires Sh1.2 billion shares in Sidian Bank". Business Daily Africa. Nairobi. Retrieved 18 August 2020.
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