Norfund - Norwegian Investment Fund for Developing Countries

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Støperigata 2
P.O. BOX 1280 Vika
0111 Oslo
Norway
Tel: +47 2201 9393
Fax: +47 2201 9394
Email: post@norfund.no
www.norfund.no

General Information

The Norwegian Investment Fund for Developing Countries, Norfund, is the Norwegian development finance institution (DFI) which seeks to develop and establish sustainable and profitable businesses in poor countries. The purpose is to promote business development and contribute to financial growth and poverty reduction. As per 01.01.2011 countries with a GDP per capita of less than USD 6885 is eligible for these investments (OECD DAC-list).
Norfund will contribute to the realisation of viable projects which balance economic, social and environmental considerations.
Norfund was established by the Norwegian Parliament (the Storting) in 1997, under special legislation, as a separate legal entity with limited liability.
Norfund invests within four different investment areas: Industrial Partnerships (mainly agribusiness and tourism), Financial Institutions, SMB Funds and Renewable Energy. The organization has approximately 50 employees in the head office in Oslo and in the four regional offices in Johannesburg, Nairobi, San José and Bangkok.

Instruments

Equity

Norfund offers private equity to businesses with a high growth potential. It invests fresh capital directly in companies and financial institutions, and indirectly through local and regional investment funds. Norfund’s participation and willingness to accept risk attracts other development finance institutions (DFIs) and investment companies.
Norfund normally subscribes 10-35% of the funding. By adopting a long-term position, the institution aims to exit from a project after three to seven years, having contributed actively to establishing every investee as a viable and healthy business.


Quasi-equity

Norfund can offer quasi-equity products with a combination of loan and equity features. These instruments make it possible to find flexible solutions which meet the special requirements of each project. Quasi-equity products include convertible loan instruments, unsecured loans, preference shares, and subordinated loans.


Loans

Norfund can provide private companies and financial institutions in developing countries with a variety of loan instruments. Norfund has the mandate and the willingness to take risks in its operational markets, but does not assume more risk than the project sponsor. Lending instruments include: Senior loans, project finance facilities, syndicated loans, mezzanine finance.