Denmark, pension funds tie up in USD-650m sustainable investment fund

The Investment Fund for Developing Countries (IFU) on Thursday launched a DKK-4.1-billion (USD 650m/EUR 550m) investment fund in Denmark aimed at promoting Danish technology and sustainable investments in developing countries.

Partners in the initiative include pension funds PKA, PensionDanmark, PFA, ATP, JOP/DIP and PenSam. Through the so-called Danish SDG Investment Fund they will seek to raise an additional DKK 1 billion from the fund’s second closing and partly support investments in developing countries worth around DKK 30 billion, Danish government-owned IFU said in a press statement.

SDG Investment Fund, which will operate as a public-private partnership between the Danish government and the pension funds, will be managed by IFU. Each of the six pension funds is contributing DKK 2.4 billion, IFU and Denmark have invested DKK 1.65 billion, while DKK 80 million came from a private investor. Together with Danish companies, the fund will invest equity in companies in Africa, Asia, Latin America and parts of Europe, with a large part of the investments expected to be made in Africa.

The establishment of the fund is seen to contribute to reaching the United Nations’ 17 Sustainable Development Goals for 2030, IFU said.

(DKK 1.0 = USD 0.158/EUR 0.134)

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