News

13 May 2016

IFU’S INVESTMENTS INCREASE BY OVER 40 PER CENT

IFU and IFU managed funds contracted investments of DKK 906m in 2015. This is an increase of more than 40 per cent compared to 2014. The net income was DKK 194m in 2015.

– 2015 was a good year for IFU. Once again, we contributed to developing the poorer countries in the world while ensuring a solid financial result, said IFU’s CEO, Tommy Thomsen.

Investments increased by more than 40 per cent and in total IFU and IFU managed funds contracted investments of DKK 906m – DKK 664m was invested in 21 new projects, while DKK 242m was invested in ongoing projects.

Consequently, IFU has over the years contracted investments of nearly DKK 18bn in more than 1,200 projects in over 100 developing countries.

IFU’s net income was 194m in 2015.

In January 2016, IFU launched the Danish Agribusiness Fund, which will invest in agriculture and food projects in developing countries. The Danish Agribusiness Fund is the newest fund that is based on a public-private partnership where institutional investors along with the Danish State and IFU have invested capital. Total capital under management was per year-end DKK 5.8bn.

– We want to contribute more to the development of the poorer countries and the realisation of the UN’s new global goals. Consequently, the strategy is that our investment level should continue to reflect strong growth. To succeed, our investments need to be commercially viable and deliver returns that make it attractive for institutional investors to place additional capital with IFU, says Tommy Thomsen.

In 2015, gross yield was 12.7 per cent on share capital and 7.7 per cent on loans.

IFU can invest in more countries

In 2015, IFU’s mandate was extended, which means that the fund can now invest in all 146 countries that have been identified by the OECD as developing countries. 50 per cent of IFU’s investments will continue to be made in the poorer developing countries. Additionally, the broader mandate makes IFU’s investment opportunities more flexible when it comes to engaging Danish businesses in projects in developing countries.

– With the new mandate we will have a better opportunity to make use of Danish technology and know-how in projects that have a positive impact in developing countries, said Tommy Thomsen.