Dias nummer 1

1
investments for development
2
investments for development
Carlsberg, Lhasa, Tibet
3
investments for development
Emperion, Nigeria
4
investments for development
IFU at a glance

• An investment fund owned by the government
• We invest through share capital and/or loans in
  developing countries with a GDP per capita below
  2,880 US
• We always invest with a strategic Danish partner
  as a minority share holder

5
investments for development

• IFU project countries
• HEAD OFFICE
• OFFICES
• ADVISER OFFICES
• ADVISERS

6
investments for development

• IØ project countries
• HEAD OFFICE
• OFFICES
• ADVISER OFFICES
• ADVISERS

7
investments for development
IFU CONTRIBUTES WITH

• Co-financing of joint ventures
• Risk-sharing
• Know-how on local investment conditions
• 40 years of experience from developing countries
  around the world
• International network of development finance
  institutions (DFIs)
• Quality mark
• Deep pockets/courage to stay the course
• Good governance/CSR policy

8
investments for development
EXAMPLE OF PROJECT FINANCING OF A JOINT VENTURE
INVESTMENT
9
investments for development
CSR policy
10
CORE ELEMENTS IN IFUs CSR POLICY
Investments for Development

• Influence projects and partners to implement high
  CSR standards in their core values.
• Embed the standards in the company also after
  the Funds have exited.
• Always - as a minimum - comply with the rules
  and regulations of the host country.
• Use Danish and/or internationally approved
  standards as benchmarks.
• Encourage projects to support UN Global Compact.
• Transparency is a fundamental principle.
• Assist and guide the individual projects.

11
investments for development
WHY DO COMPANIES INVEST IN EMERGING MARKETS?

• Companies primarily invest to gain
• Market access/high growth regions/ first mover
  advantages
• Reduction of production costs
• Access to raw materials
• Export advantages in the region
• Access to grants and soft funds
• Sale of equipment
• Outsourcing has been criticised frequently
  leads to loss of jobs in Denmark
• Studies have shown it is not the case

12
investments for development
583 PROJECTS DISTRIBUTED BY CONTINENT 1968-2006
13
investments for development
IFUS ACHIEVEMENTS WORLDWIDE IRR IFU 1968-2007
14
investments for development
IFUS ACHIEVEMENTS WORLDWIDE IRR IFU 1997-2007
15
investments for development
Increased focus on SMEs
16
investments for development
Flexa, China
17
investments for development
Danish Steel Cluster, India