WHAT WE OFFER

    CAPITAL AND ADVISORY SERVICES

    Risk capital

    The Danish Agribusiness Fund provides risk capital for agriculture and food projects in developing countries and emerging markets in Asia, Africa, Latin America and parts of Europe. Our investments are made on a commercial basis, and we offer funding in the form of:

    • Share capital
    • Mezzanine finance (equity-like loans)

    The Danish Agribusiness Fund invests directly in companies in the investment country. The fund will always be a minority investor, and additional financing of projects is necessary. This may be through Danish or local investors or for example through regional development banks, etc. The funding from the Danish Agribusiness Fund can range between DKK 15 and 150m in a single project.

    DAF investment model

    Advisory services

    The Danish Agribusiness Fund provides professional advisory services all the way from the initial idea, through construction, and until the project is economically viable.

    The advisory services consist e.g. of an evaluation of the business plan, financing, legal issues, negotiating with partners, access to local authorities and localization, etc. The fund is involved in a thorough dialogue with the project owners and the involved Danish partners, where all relevant business issues are discussed and handled.

    The Danish Agribusiness Fund also contributes with knowledge and advice on sustainability issues and answers the questions that companies and investors are confronted with in relation to this topic. This applies for example for questions regarding the environment, employee relations, corruption and supply chains.

    Experienced advisers in Denmark and abroad

    Advisory services are provided by IFU’s investment advisers in Copenhagen and via our regional offices in Asia, Africa, Latin America and Europe. Our Danish and local employees have extensive knowledge of such aspects as business environment, culture and language in their specific region.

    Additionally, the Danish Agribusiness Fund can also draw upon IFU’s large network of external advisers.

    Handbooks that can guide your work

    IFU, the fund manager of the Danish Agribusiness Fund, has prepared a series of handbooks on business plans, board work, sustainability and financial reporting. These are made available to interested companies and can be downloaded here.

    Case Danper
    Danper, Peru

    ACTIVE PARTICIPATION IN PROJECT DEVELOPMENT

    IFU and Danida has established a project development facility of DKK 50m, which may co-finance the costs of developing e.g. agricultural and food projects. The aim is to reduce the financial risk for Danish partners and developers who want to initiate commercial projects in developing countries and emerging markets.

    DKK 5m per project

    The prerequisite for IFU’s financial participation in the development of a project is that it is estimated that it can become economically viable and bankable in the future and that IFU can expect a return. If so, IFU can contribute 50 per cent of the development costs up to a maximum of DKK 5m per project.

    Projects must also be implemented in one of the 146 investment countries that IFU can invest in and comply with IFU’s sustainability policy and general regulatory requirements.

    Project must be approved by IFU

    Project proposals are treated individually and must include a business idea, perspective and specific costs. The proposals are presented at IFU’s investment committee meetings for final approval.

    Focus on larger Danish companies

    The target group for the project development facility is large and medium-sized Danish companies. Smaller companies are referred to IFU’s SME facility.