The Danish investment fund IFU expects approval within shortly of a new revision of its mandate, which will allow IFU to expand its investments in Malaysia, offering new exciting possibilities for Danish companies there as well as in the region.
The independent government-owned investment fund provides advisory services and risk capital to Danish companies wishing to set up operations in developing countries. IFU invests on a commercial basis by committing equity capital or by providing loans or guarantees to project companies, the purpose being to promote development in host countries.
The revised mandate will allow the Fund to expand its business in Malaysia and other middle-income countries. IFU has previously been able to invest in Malaysia and has good experiences from partnering with companies such as Aalborg Portland, Fibertex and Rockwool, but due to Malaysia’ s rising per capita income IFU has recently only been able to invest through its Climate Investment Fund. But the revised mandate will allow investment in general in the Southeast-Asian country, offering new exiting possibilities for Danish companies.
Senior Vice President Peter Schwalbe and Regional Manager Deepa Hingorani visited Malaysia 4-5 March to give a presentation to the Malaysian Danish Business Council (MDBC) and explore investment opportunities through meetings with various individual companies.
IFU provides advice, knowledge sharing and risk capital to existing and new Danish subsidiaries as well as in mergers and acquisitions. IFU invests with both medium-sized and large Danish companies such as Vestas, Carlsberg, Rambøll, F.L. Smidth and Mærsk and can provide share capital and/or loans in the range from DKK 1 to 100 million. With more than 1200 direct investments in close to 100 developing countries and emerging markets IFU is the most experienced Danish investor assisting Danish companies in setting up subsidiaries in Asia, Africa, Latin America and Europe.
IFU is also in the process of establishing an Agri Business Fund, which can invest in projects using Danish technology, service providers or which have a Danish interest in another relevant form. IFU is also the fund manager of the Danish Climate Investment Fund, which promote climate investments in developing countries and emerging markets, thereby contributing to reducing global warming and promote transfer of Danish climate technology.
IFU has co-invested with Danish companies in 812 companies in 88 developing countries. Committed investments total more than DKK 115 billion, of which IFU has contributed more than DKK 10 billion.
IFU investments have contributed to creating around 350,000 jobs in the host countries.