{"id":477459,"date":"2023-05-31T11:42:53","date_gmt":"2023-05-31T11:42:53","guid":{"rendered":"https:\/\/www.kapitalafrik.com\/?p=477459"},"modified":"2023-05-31T11:43:00","modified_gmt":"2023-05-31T11:43:00","slug":"finnfunds-investment-portfolio-grew-with-a-profitable-result","status":"publish","type":"post","link":"https:\/\/www.financialafrik.com\/en\/2023\/05\/31\/finnfunds-investment-portfolio-grew-with-a-profitable-result\/","title":{"rendered":"Finnfund\u2019s investment portfolio grew with a profitable result"},"content":{"rendered":"
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Finnfund is a development financier and impact investor. Last year, the company\u2019s investment portfolio grew from EUR 780 million to EUR 810 million. Finnfund\u2019s investments, commitments and investment decisions totalled about EUR 1.22 billion at the end of the year. Africa remains Finnfund\u2019s primary investment destination, accounting for 57 per cent of volume and 54 per cent of decisions.<\/p>\n\n\n\n

These figures are presented in Finnfund\u2019s Annual Report, which collates key information about Finnfund\u2019s financial performance, sustainability, and impact.<\/p>\n\n\n\n

\u201c2022 was an exceptional year in many ways. Several simultaneous crises had global impact: the war in Ukraine, the coronavirus pandemic, political unrest and general economic uncertainty, inflation and, in particular, rising energy and food prices. This has also been strongly reflected in emerging markets,\u201d says Finnfund\u2019s CEO, Jaakko Kangasniemi<\/strong>.<\/p>\n\n\n\n

\u201cHowever, as a development financier, it is our task to be where we are most needed. Crises shape markets, yet they also offer opportunities. We\u2019ve succeeded in operating profitably, exceeding our targets for new projects and, in line with our strategy, increasing both the size and impact of our investment portfolio. At the same time, we\u2019ve kept our investment portfolio net carbon negative, that is, our investments sequester more carbon than they emit. We intend to ensure this in the future as well,\u201d says Kangasniemi.<\/p>\n\n\n\n

Finnfund exceeded its target for new investments, making 28 new investment decisions totalling EUR 246 million. 92 per cent of these new investment decisions took place in lower middle-income and poorer countries.<\/p>\n\n\n\n

Although the effects of the coronavirus pandemic and various political crises led the company to make a loss in 2021, the result for 2022 was profitable once again. Profit for the year totalled EUR 324,000, and all of it will be used to make new investments.<\/p>\n\n\n\n

During the year, Finnfund also took major steps forward in developing and expanding its operations: the company opened its first regional office in Nairobi, the capital of Kenya, and successfully issued its first EUR 75 million sustainable development bond. This bond supports Finnfund\u2019s objective of promoting sustainable development by offering investment opportunities to private investors and increasing the proportion of private capital in its financing to at least 50 per cent.<\/p>\n\n\n\n

The Annual Report also collates the latest information (for 2021) about the impact of Finnfund\u2019s investment activities at portfolio level. For example, Finnfund\u2019s investee companies<\/p>\n\n\n\n