Ample opportunities for Danish green financing via Investment Fund for Developing Countries (IFU)
Updated: Feb 3
Investment Fund for Developing Countries (IFU) is an independent government-owned fund offering advisory services and risk capital to companies wishing to do business in developing countries and emerging markets.
IFU’s objective is to contribute to economic and social development in the investment countries and support the realization of the UN Sustainable Development Goals.
IFU’s investments are made on a commercial basis, and – depending on the mandate of individual funds - funding comes in the form of:
Mezzanine financing (equity-like loans)
IFU can invest up to DKK 250 million (USD 40 million) per project company. Generally, IFU has a mandate to take up to a 30% stake in an investment project, but up to 49% in small projects.
All companies can benefit from IFU’s services. And as of 31 December 2016 IFU’s mandate was changed so that IFU is no longer tied to Danish companies or a Danish interests alone.
However, at least four conditions must be met:
The business operation must be deemed to be commercially viable;
Projects must have a positive development impact in the host country;
The host country must be on the DAC List of ODA Recipients in order to be eligible for IFU investments.
Furthermore, IFU does not finance projects within certain product areas. See the list here.
IFU, and IFU managed funds, have invested in 1,300 projects in 100 countries. Investments generally produce positive results and have turned out to be good business for all parties involved; for the host country, the partners and for IFU. Total investments to date amount to DKK 209bn, of which IFU has contributed DKK 23bn. This has helped to create close to one million jobs in the host countries.
Continue reading for a summary of IFU managed funds of relevance to markets in Southeast Asia.
Do you want to get in touch with IFU about projects in Southeast Asia? Download IFU’s one-pager including contact information here:
IFU's Project Development Programme
IFU’s Project Development Programme (PDP) is designed to promote the development of new investment projects in emerging markets by covering up to 50% of up-front well-defined project development costs with a max. limit of DKK 5 million per project. PDP projects should ultimately lead to successful IFU project investments. The host country must be on the DAC List of ODA Recipients in order to be eligible for PDP. Eligible partners are Danish or international partners and/or promoters that normally will qualify being participating partners in large scale IFU investments. Unusual risks for reaching the implementation stage – f.i. unproven technology, financial weak development partners a.o. – is not seen as PDP’s target.
For more information about the application process, eligibility, and related conditions, please contact:
Vice President, South Asia
Danish SDG Investment Fund
The Green Future Fund
IFU's own funds
For more information about use of the project development facility on markets in Southeast Asia:
Vice President, South Asia