1. IFU – Investment Fund for Developing Countries
Presentation on South Asia
IFU – Investment Fund for Developing Countries
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2. 1967 20 184 146 bn DKK IFU IN BRIEF bn DKK
Independent government-owned fund, operating on commercial terms
Promotes economic and social progress in developing countries
146
Provides risk capital and advice
for projects having a Danish interest
investment countries
Established in
Total contracted investments of more than
1967 20
184
bn DKK
bn DKK
invested in share capital and loans
Leverage/mobilisation of capital: factor 8-9
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Presentation on South Asia

3. IFU’s INVESTMENTS AND RETURNS
40 – 50 annual investments
New and additional financing
10.9 %
Investments in more than 100 countries
Active portfolio of 208 projects
Average commitment of years
1260
The average annual gross return on share capital ( )
DKK 9.1bn
Contracted investments in 2016
DKK 1,296m
Capital under management
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Presentation on South Asia

4. IFU AS FUND MANAGER Danish SDG Investment Fund
IFU and six Danish pension funds have established Danish SDG Investment Fund, which will contribute to meeting the sustainable development goals through commercial private sector investments in developing countries.
The current capital commitment is DKK 4.1 billion. The total objective is a fund of up to DKK 5 billion. It is expected that the remaining capital commitments will be made in a second closing in the second half of 2018
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Presentation on South Asia

5. IFU IN SOUTH ASIA Pakistan Active projects: 1 Exited projects: 13
NEW DELHI
Pakistan
Active projects: 1
Exited projects: 13
India
Active projects: 17
Exited projects: 79
Bangladesh
Active projects: 1
Exited projects: 8
Sri Lanka
Active projects: 2
Exited projects: 6
SINGAPORE
IFU, KIF and DAF presence
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Presentation on South Asia

6. FOUR ELEMENTS IN IFU’S VALUE CREATION
Financing
Risk sharing and long-term
Investment horizon
Share capital
Loans
Guarantees
Investment period 6-8 years
Agreed exit
Advice
Evaluation of business plan
Financial structure
Legal set-up
Partner negotiations
Governance/Sustainability
Access to local authorities
Finding premises
FOUR ELEMENTS IN IFU’S VALUE CREATION
Strategic partner
Board work
Strategic advice
Additional financing
Sustainability reporting
SDG impact
Network & local presence
Experience from 1,260 investments in 100 countries
Ten regional offices in Africa, Asia and Latin America
30 local and regional advisers
Experienced investment teams
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7. 96 34 12 1bn years DKK IFU IN INDIA bn DKK
Experienced investment team in India, Singapore and Copenhagen 96
Regional office since 1997;
since 2001 in New Delhi
investments made by IFU
Total contracted investments of more than
Project Pipeline
Fertilizer
Municipal waste management
Renewable energy (solar, wind)
Microfinance
Media
Dairy 34 12
years
bn DKK
of experience
1bn
DKK
invested in share capital and loans
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Presentation on South Asia

8. 9 32 3 119m years DKK IFU IN BANGLADESH bn DKK
Experienced investment team in India, Singapore and Copenhagen 9
Regional office since 1997;
since 2001 in New Delhi
investments made by IFU
Total contracted investments of more than
Project Pipeline
Ice cream factory
SME finance company 32 3
years
bn DKK
of experience
119m
DKK
invested in share capital and loans
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Presentation on South Asia

9. 40 14 10 313 years IFU IN PAKISTAN bn DKK m DKK
Experienced investment team in Copenhagen and Kiev 40 14
years
of experience
investments made by IFU
Project Pipeline
Total contracted investments of more than
Total investments in share capital and loans
Cement
Renewable energy (Wind) 10
313
bn DKK
m DKK
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Presentation on South Asia

10. IFU – INVESTMENT MODEL (Pre-2016)
IFU had a restrictive mandate allowing it to only invest in projects with a Danish company as a co- investor
Over the last 50 years, IFU invested alongside approximately 800 Danish companies in setting up subsidiaries / JVs in 100+ developing countries
Danish Partner
IFU
Equity (USD 1 to 15mn)
Equity
Loan
Local bank
Project company
Local investor
Equity
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Presentation on South Asia

11. IFU – INVESTMENT MODEL (Post-2016)
IFU’s new investment model emerged, wherein Equity participation from the Danish partner has been replaced by an “Interest”
This will allow multiple new collaboration opportunities wherein IFU will now be able to provide risk capital to customers, suppliers, or vendors of Danish Companies
Danish Partner
IFU
Equity (USD 1 to 40mn)
Interest*
Loan
Local bank
Project company
Local investor
Equity
Interest
Danish investor
Danish company supplying goods, technology, know-how, management or services;
Indirect financial participation to the project company;
Danish company sourcing products from the project company;
Danish participation on the board or in the management team of the project company;
Use of state-of-the-art Danish technology in the project;
Direct or indirect job creation in Denmark
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Presentation on South Asia

12. CASE: ROSERVE, INDIA
Water treatment
India
Signed
DKK 16m
DKK 95m
CO2 savings over project life
2,817,090 t
Roserve provides Industrial Effluent recycling plants on an operating lease (6 years) to industries required by law to have a zero liquid discharge (ZLD) from their operations. Approx 20% of the plant cost is pumps from Grundfos.
The customers will be from industries such as pharmaceuticals, chemicals, distilleries, yeast, tanneries and textiles.
Waste water recycle market in India is still at a nascent stage, however growing at a compounded annual growth rate of 16%.
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Presentation on South Asia

13. CASE : SARAF FOODS, INDIA
KEY FACTS
Project Type Freeze dried fruits and vegetables
Country India
Status Signed
Fund Participation DKK 15m
Expected total investment DKK 65m
Saraf Foods is a 25 year old food processing company engaged in the production of freeze dried fruits and vegetables. The Company supplies its products to various FMCG companies globally.
Through IFU’s investment, the Company expanded its operations by nearly doubling its freeze drying capacity, adding a segment of air dried vegetables and backward integrated by adding a IQF line.
Saraf Foods buys freeze drying equipment from GEA Process Engineering A/S, a reputed Danish equipment supplier to food processing industry.
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Presentation on South Asia

14. CASE : POWER CEMENT, PAKISTAN
KEY FACTS
Project Type Cement production
Country Pakistan
Status Signed
Fund Participation DKK 71m
Expected total investment DKK 1,914m
Power Cement is a cement factory, established in 1981 in Jamshoroo, Pakistan. The Company is supplying the increasing demand for cement in Pakistan. Furthermore, it has a location allowing for export of excess production.
IFU’s investment is part of an operation expansion, by constructing a third production line and thereby increasing the cement capacity by 7,700 tpd to a total of 10,700 tpd.
FLSmidth is providing engineering, procurement, equipment and is in negotiations to supervise the expansion.
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Presentation on South Asia

15. Thank you!
1/18/2019
Presentation on South Asia