Institution details
Norfund (NORFUND)
Key facts
- Established in 1997
- Ownership: Public
- Fridtjof Nansens plass 4
- None
- https://www.norfund.no
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | S&P | Foreign currency | AAA |
Country rating | S&P | Local currency | AAA |
Products
- Equity
- Loans
- SME funds (private equity funds)
Equity
- Norfund’s equity investments are from about USD 4 million and above
- The fund takes a maximum of 35% ownership share
- It assumes the role of an active owner and follows the development of the company closely
Loans
- Generally, Norfund only offers loans to companies in which the fund already has an equity position
- However, ordinary loans can be offered to financial institutions like banks, or in some cases to other companies such as small Norwegian enterprises
- The loans are in the same size range as equity positions
SME funds (private equity funds)
- Norfund also invests equity indirectly through SME funds, specifically funds that work to develop SMEs in the Norfund geographies
- The SME fund positions are in the same size range as the direct equity investments
Performance highlights
What's new?
- Following the previous successful funds under the Nordic Microfinance Initiative (NMI), Norfund and the other NMI investors have agreed to invest in the first closing of a new fund, NMI Fund IV
- Tellef Thorleifsson is appointed as new CEO for Norfund
- An evaluation report commissioned by Norad concludes that Norfund has good procedures in place to ensure that human rights are respected
- Norfund primarily invests in clean energy, financial institutions, and food and agribusiness
- Its priority geographical areas are sub-Saharan Africa, but also some selected countries in Southeast Asia and Central America
- Norfund’s strategy is to concentrate the investments to a limited number of geographical regions and sectors where it can have the greatest impact
- Through active ownership, Norfund ensures that all the companies it invests in are run professionally, responsibly and predictably
- It requires that all investees comply with the environmental and social standards of the IFC and International Labour Organization (ILO)