Transcript Slide 1

PRESENTATION OF IFU
Investment Fund for
Developing Countries
Welcome to the
Nordic Chambers’ Breakfast Seminar
31 January 2012
WHAT IS IFU?
• IFU is a self-governing fund established in Denmark by law in 1967
• Purpose: To promote economic activity in developing countries
• Advises and invests with Danish companies in developing countries and
emerging markets
• Operates on commercial terms
• Environmentally and socially sustainable investments
IFU STRONG POINTS
• More than 40 years of experience from developing countries and emerging
markets
• Regional offices in India, China, Kenya, South Africa, Egypt and Ghana
• Know-how about local investment conditions
• Hands-on during preparation and implementation
• “Quality mark”
• International network of development finance institutions
INVESTMENT COUNTRIES AND OFFICES
INVESTMENT LIMIT USD 6,098 (2011)
DKKm
IFU INVESTMENTS BY REGION 1967-2010
10.000
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
8.861
4.118
2.911
1.294
Total
Asia
Africa
719 investments in 85 countries by 2010
51 new investments in 2011. Value DKK 510 million
Latin America
357
181
Europe
Global
DKKm
FINANCIAL HIGHLIGHTS 1967-2010
5.000
4.500
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
4.455
4.406
Share capital
Loans
2.304
1.051
1.025
Paid in
Paid out
Equity
IFU INVESTMENTS 1967-2010
99.617
100.000
80.000
DKKm
60.000
40.000
20.000
8.861
0
IFU investments
Total investments
INVESTMENTS AND RESULTS 2006-2010
700
40
600
35
30
500
25
400
300
15
200
10
100
5
0
0
2006
2007
Investments contracted
2008
Financial result
2009
New investments
2010
Additional financing
No.
DKKm
20
ECONOMIC OUTLOOK
USA
2011 2012 2013
2.8 pct. 2.9 pct. 2.7 pct.
Latin America
2011 2012 2013
4.1 pct. 4.1 pct. 4.1 pct.
Source: IMF World Economic Outlook, April 2011
Western Europe
2011 2012 2013
2.3 pct. 2.5 pct. 2.5 pct.
Africa
2011 2012 2013
4.3 pct. 5.3 pct. 5.3 pct.
China
2011 2012 2013
9.6 pct. 9.5 pct. 9.5 pct.
India
2011 2012 2013
8.2 pct. 7.8 pct. 8.2 pct.
A NUMBER OF IFU’s DANISH PARTNERS
IFU AS AN ADVISER
• Legal set-up/requirements
• Financial structure
• Where to establish
• Negotiations with local partner, if any
• Dealing with authorities
THE INVESTMENT
• Risk sharing and long-term strategy
• Share capital
• Loans
• Financing packages
• Investment period 6-8 years
• Agreed exit strategy
• Investments up to DKK 100m per project
• Joint venture ownership: ranges from 4% to
50%
EXAMPLE OF IFU INVESTMENT
CONTINUED INVOLVEMENT
• Ongoing dialogue and advice
• Member of project company board
• Additional financing
• Good governance and CSR policy
INVESTMENT CYCLE
WHEELS ARE RUNNING
PROJECT IDEA
ESTABLISHMENT
IFU EXITS
6-8 years
Q&A
Please contact
IFU’s Advisers in Thailand:
Poul Weber
081 815 99 63
[email protected]
Leo Alexandersen
081 824 83 84
[email protected]
or direct to IFU in Copenhagen
IFU
Fredericiagade 27
1310 Copenhagen K
Denmark
Tel. +45 33 63 75 00
Fax +45 33 63 75 99
[email protected]
www.ifu.dk