When Norfund has conducted a thorough due dilligence of a company, negotiations and commitment to investment may take place.
Norfund will negotiate with the other partners to structure the financing of the business in the best suited way for the project and all partners. The negotiations will cover issues such as company structure, ownership shares, board positions, management incentives, disbursement conditions and plans etc. Depending on the project size and type, these negotiations might go on for several months. Norfund aims to establish contracts and deals that secures the invested capital in the best possible way, and in a way which gives Norfund the possibility to be an active owner of the business.
Environment, social and governance standards will also be included in the negotiations. This to ensure appropriate governance structures and plans for company development to be able to deliver according to the standards required by Norfund.
Finally, the deal is signed, and the investment is committed by Norfund (note: Disbursement of money might not take place until later, according to plans stated in the investment agreement).