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The Finnish Fund for Industrial Cooperation Ltd (Finnfund), is Finland’s development finance institution that provides long-term investment loans and risk capital to private projects in developing markets. It was founded in 1980, and its ownership is split between the Finnish State with majority shares (95.7%), Finnvera (4.2%), and the Confederation of Finnish Industries (EK) (0.1%). Finnfund is a member of the European Development Finance Institutions Association (EDFI).
Finnfund came fifteenth from 21 non-sovereign DFIs assessed with a score of 24.4 out of 100. Finnfund’s overall performance was negatively affected due to the fact that it does not disclose a bulk download export of investment data and does not publish to the IATI Standard. It came second in the Financial Intermediary Sub-investments component
Finnfund came twelfth in the Core Information component, with 7.63 out of 20. It scored for fifteen out of the seventeen indicators, only failing to score for status and funding source. It dropped points however for format of publication for many indicators due to there not being a bulk download available and for not publishing to the IATI Standard.
Finnfund came sixteenth in the Impact Management component with a score of 5 out of 25. It received all of these points from the impact measurement approach indicator. Significantly, it was one of only six non-sovereign DFIs to score 100% for this indicator. On the other hand, it did not score for any of the other five indicators in this component.
Finnfund scored 8.5 out of 30 in the ESG and Accountability to Communities component, coming joint thirteenth. It scored 100% for its E&S and project-level grievance (PGM) community disclosure policies. It also scored points for E&S global disclosure policy. Finnfund does not have an independent accountability mechanism (IAM), therefore did not score for any of the indicators relevant to that. Finnfund did not score for any project-level indicators in this component.
Finnfund came joint last in the Financial Information component, with 0.75 out of 15. It only scored points for the financial reports/statements indicator. Again, it did not score for any project-level indicators.
Finnfund scored 2.5 out of 10 in the Financial Intermediary (FI) Sub-investments component, which was joint second. Significantly, it was only one of three non-sovereign DFIs to score both for having a policy for FI sub-investment disclosure and for disclosing private equity fund sub-investments. It did not score for the two other indicators in the component however.
- Finnfund should become an IATI publisher and disclose all investments to the IATI Standard.
- It should make its data available in a bulk download format to improve useability and accessibility.
- Finnfund should disclose further Core Information data including unique identifier, status, sub-national location, sub-sector, disbursement, funding source, date of activity disclosure, approval date, and last update date.
- Finnfund should review its Disclosure Policy according to current best practice.
- It should disclose organisation-level Impact Management indicators, including sector/country strategies and evaluations, and project-level indicators including additionality statement, activity indicators/metrics, and results.
- Finnfund should disclose project-level ESG and Accountability to Communities indicators, including summary of E&S risks and E&S assessment and plans.
- It should develop an early disclosure policy covering, at a minimum, high risk projects and disclose investments in line with the policy.
- Finnfund should create an IAM, following best practice examples and incorporate disclosure requirements for an IAM into existing policies.
- It should provide assurance of community disclosure for investments when disclosure is required.
- For Financial Information indicators it should disclose currency of investment, concessionality, mobilisation, and instrument-specific details (share of equity, interest rate, loan tenor, and length of guarantee). It should consistently disclose repeat investment and co-financing data.
- For FIs, Finnfund should consistently disclose the FI (bank) use of funds and start publishing qualifying FI (bank) sub-investments in line with guidance from Publish What You Fund’s DFI Transparency Tool.