Market terms and minority stake
The terms of our financing are market-related. We do not extend soft loans but are ready to share risks by providing long-term financing for promising projects in challenging markets, where commercial financing is hard to obtain.
Our funding can be in the form of equity capital, mezzanine financing or long-term investment loans. Regardless of the form of financing, we always participate with a minority stake.
Experience of developing markets
Apart from our risk capital, we bring in links to our network of development finance institutions and other potential co-financiers as well as our experience from financing and joint venture arrangements in developing countries. Especially for clients making their first investment, our knowledge of the business environment may be of considerable value.
We can finance projects in developing countries and Russia.
While most of our investments are in manufacturing, we also finance other sectors ranging from agribusiness and power generation to telecommunications and services.
Finnfund also selectively finances the local private sector through intermediaries such as private equity funds.