Financial results

Norfund’s financial results in 2021 are heavily positively affected by the sale of SN Power to Scatec. Further, a substantial share of our previous years write-downs due to the pandemic could be reversed as business conditions slightly have improved throughout 2021 in many markets. However, we have had to take write-downs of investments especially in Myanmar due to the military intervention at the beginning of 2021.

The sale of SN Power, contributed to an exceptional profit of 5 815 million NOK after tax. Norfund’s overall balance at the end of 2021 was 32.5 billion NOK. Our total investment portfolio at estimated market value has decreased by 1.4 billion NOK throughout 2021, as a result of the sale of SN Power.

Due to a growing balance sheet in foreign currencies, we see significant fluctuations in our values in Norwegian kroner. This year we end with a substantial foreign exchange gain.

The Internal Rate of Return (IRR) for 2021 was 1.5%, compared to -0.1% in 2020, calculated in investment currency. Calculated in Norwegian kroner, the IRR for 2021 was 3.8%, compared to -3.6% in 2020.


IRR for 2021 (investment currency)


IRR since inception (investment currency)

As we see significant annual variations, the return on our investment is better reflected in IRR calculations since inception. As of 31 December 2021, Norfund’s IRR since inception, calculated in investment currency, was 4.9%. In Norwegian kroner, the IRR since inception was 7.4%.

Clean Energy portfolio

In 2021, Norfund’s Clean Energy portfolio had an IRR in investment currency of 0%, mainly due to adjusted values related to the sale of SN Power. Except this, the IRR is 3.5%, which is higher than in 2020. The portfolio has been improving well during the year and major new investments will be finalized, including our first investment in India.

Financial Institutions portfolio

Investments in Financial Institutions have had a positive development with an IRR of 1.5% in investment currency. This result was higher than the negative IRR of -2.2% in 2020. The main drivers for this were a recover of the values of the bank investment portfolio in Arise, while write-downs have had to be taken in Myanmar. However, there has been limited need for restructuring, and new investments were made during the year. 

Scalable Enterprises – funds

The IRR of our portfolio in Scalable Enterprises – Funds increased from minus 12.2% in 2020 to plus 5.6% in investment currency in 2021. The performance of funds in emerging and frontier markets is still negative, however there is a positive return in larger, institutional and venture funds. We have seen several improvements across all markets, with exception for the situation in Myanmar.

Scalable Enterprises – direct investments

The Scalable Enterprises – Agriculture & Manufacturing portfolio had an IRR of 6.5 per cent in 2021, substantially improving from -9.8% in 2020, measured in investment currency. After major write-downs in 2020, the main investments recovered quickly and contributed to the positive IRR.

The realised values from exits from all the above sectors will be reinvested in new investments that exhibit high development impact potential.

Internal Rate of Return (IRR) in investment currency

Since inception20212020201920182017201620152014201320122011
Green Infrastructure8.78.7
Clean Energy6.
Financial Institutions51.5-
Scalable Enterprises Direct-2.76.5 -9.83.3-5.04.1-5.2-4-10-4-102
Scalable Enterprises Funds-0.45.6-12.2-7.4-14.4-4.0-1.60-31293