Authorizations and exposure

• 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

• 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

• 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

• Frontier Facility:
• Formerly known as the Project Development and Risk Mitigation Facility
• Funded by the Norwegian Ministry of Foreign Affairs
• Enabling early phase project development within Norfund’s investment areas and serves as risk mitigation for commercial investors that wish to invest in Norfund funded projects, throughout the project cycle

• Norfund focuses its investments in renewable energy, financial inclusion, scalable enterprises, and green infrastructuer

• 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)

• Additionality: Norfund is committed to making a difference by investing where capital is scarce and through active ownership

• The “Operating Principles for Impact Management” is a new investment tool that has established a market consensus for the management of investments for impact
• The principles were developed by the IFC in consultation with a core group of stakeholders and draw on emerging best practices.
• They provide a reference point against which the impact management systems of funds and institutions may be assessed

• Norfund has a responsible tax policy