Majority of Finnish Industry Investment’s €150m commitments in energy and environmental sectors

1 April 2009

Government-owned investment company Finnish Industry Investment made investments totalling €150m during the course of 2008, of which €130.9m was in funds and €19.4m was direct investments in growth companies.

By the end of the year, the company has invested in 438 companies. The majority of investments took place in the energy and environment sectors, with consolidation accounting for a large proportion of commitments. However, due to the scarcity of bank financing towards the end of the year as a result of the financial downturn, the volumes of investments fell below 2007 levels. The group therefore posted a loss of €23.8m for 2008.

‘The sharp decline in valuations of investments resulted in a net loss for 2008 after a number of consecutive profitable years. Projects in progress have difficulties in finding loan financing or new investors. Meanwhile, Finnish investors are holding a record amount of uninvested capital. Adjusting to the changed market situation poses a major challenge for the sector in the near future. A long-term and active approach combined with a willingness to take risks are the best way to promote Finnish business,’ said CEO Juha Marjosola.

By the end of 2008, Industry Investment’s outstanding investment commitments, totalling €573.3m were divided between fund investments at 72.5 per cent, the Kasvurahastojen Rahasto I Ky fund which took up 9.4 per cent, the parent company’s direct investments which accounted for 8.6 per cent and the subsidiary Start Fund I Ky’s investments amounting to 9.5 per cent.

In March 2009, the company decided to issue shares in Industry Investment worth €150m and not pay a dividend for financial year 2008.

Finnish Industry Investment is a government-owned investment company that promotes Finnish businesses, employment and economic growth through capital investment.

Copyright © 2009 newnet

Tags: energy, renewable energy

This story was published on Wednesday, April 1st, 2009 at 12:33 pm and is filed under Europe, companies, energy efficiency. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply