New Danish fund contributes to UN Sustainable Development Goals in developing countries
The Danish investment fund IFU and six Danish pension funds has signed an agreement to establish the Danish SDG Investment Fund, which will contribute to meeting the UN Sustainable Development Goals in developing countries and promote the sale of Danish know-how and technology.
The Danish pension funds PKA, PensionDanmark, PFA, ATP, JØP/DIP and PenSam has together with IFU signed an agreement to establish the Danish SDG Investment Fund, which is part of the Danish contribution to the 17 UN Sustainable Development Goals.
Danish SDG Investment Fund is a public-private partnership, in which the Danish state and the pension funds collaborate to take up an important social challenge. In that way, the fund is an innovative solution to how Denmark can contribute to increasing private investments in developing countries, which is a prerequisite for meeting the Sustainable Development Goals towards 2030.
– The fund is a specific example of the paradigm shift in Danish development cooperation – we cannot meet the Sustainable Development Goals and lift people out of poverty without private investments. The Danish pension funds’ participation shows great leadership and global responsibility. I am very happy about the agreement, said Ulla Tørnæs, Danish Minister for Development Cooperation.
Solid return to investors
The current capital commitment to the Danish SDG Investment Fund is DKK 4,1bn. The six pension funds are contributing DKK 2,4bn in total, IFU and the Danish State are contributing DKK 1,65bn, and a private investor is contributing DKK 80m. The objective is to raise about DKK 1bn more in a so-called second closing.
Danish SDG Investment Fund will invest equity in companies in Africa, Asia, Latin America and parts of Europe. Investments will be made in cooperation with Danish companies, which have strong competencies, knowledge and technologies within several strategic sectors that support the realisation of the development goals.
When we invest in each other’s countries, the world becomes a better place, said Shirley Ayorkor Botchwet, Ghana’s Minister for Foreign Affairs.
Investments of DKK 30bn
Danish SDG Investment Fund will be managed by IFU, which has invested in over 1,250 project companies in more than 100 developing countries in collaboration with Danish companies. The new fund will, as IFU, participate in raising further capital in the individual companies in the developing countries, and therefore we are very happy that the Danish SDG Investment Fund will create a positive return to its investors as well as improve the livelihoods of people in developing countries, said Tommy Thomsen, CEO in IFU. and Ministry of Foreign Affairs of Denmark
Photo credid: NN – norden.org