Financial results

Norfund’s financial results in 2022 are heavily positively influenced by the strengthening of our main investment currencies against NOK, in addition to increasing interest rates in our loan portfolio and dividends from investments in renewable energy. Norfund ended the year with a positive result after tax of 2.2 billion NOK.

We received total dividends of 421 million NOK and interest income has increased significantly to 475 million NOK due to a growth of 28% of our loan portfolio in investment currency while floating interest rates have soared.


IRR for 2022 (investment currency)


IRR since inception (investment currency)

(The IRR for 2022 and since inception are both 5.1%, and is not a typo.)

Net write-down of investments was 243 million NOK. While some investment areas have seen improvements as COVID-19 restrictions have been lifted, repercussions of the pandemic as well as the Russian invasion of Ukraine have led to high inflation rates in many markets, with negative effects on our investments and subsequent write-downs. Additionally, as the situation in Myanmar remains challenging, we have further written down our investments in the country.

Norfund’s overall balance at the end of 2022 was 37.4 billion NOK. Capital allocations from the Norwegian government of 2.7 billion NOK and the net profit of 2.2 billion NOK has increased the balance by 4.9 billion NOK since the end of 2021. The net asset value at the end of 2022 based on the estimated market value of Norfund’s portfolio, was 39.8 billion NOK. Norfund’s Climate Investment Fund accounts for 2.0 billion NOK of Norfund’s balance and 1.0 billion NOK of the capital allocation.

Read more about the Climate Investment Fund here.

In 2022 Norfund had an Internal Rate of Return (IRR) of 5.1% compared to 5.2% in 2021, calculated in investment currency.* In NOK, Norfund obtained an IRR of 14.8 % during 2022 compared to 7.2% in 2021.

As we see significant annual variations, the return on our investment is better reflected in IRR calculations since inception. As of 31 December 2022, Norfund’s IRR since inception, calculated in investment currency, was 5.1%. In NOK, the IRR since inception was 8.1%.

*The IRR reported for 2021 has been updated due to information received after the reporting period.

Renewable Energy portfolio

In 2022, Norfund’s Renewable Energy portfolio had an IRR in investment currency of 11.3%. Despite an increase in the cost of capital with corresponding negative value adjustments, we have seen significant returns generated in some of the larger platform companies. Since inception, the IRR is 6.4%.

Financial Inclusion portfolio

Investments in Financial Institutions had an IRR of 0.2% in investment currency in 2022. This is significantly lower than the IRR of 10.2% in 2021. Since inception, the IRR has been 5.5%. The main drivers for the low IRR in 2022 were declining equity valuations for investments in financial institutions in Ghana, Myanmar and Sri Lanka due to the macroeconomic situations in those countries combined with generally higher cost of capital for banks. Outside of these cases the portfolio performed well, especially the loan portfolio with interest rates on the rise and fewer covenant breaches.

Scalable Enterprises – funds

The IRR in investment currency of our portfolio in Scalable Enterprises – Funds decreased from 5.6% in 2021 to 1.8% in 2022. Since inception the IRR is 0.4%. The negative performance in listed markets is affecting the pricing of privately held assets, which the portfolio almost exclusively consists of. We have moreover experienced that funds which we have committed to over the past five years perform better than older funds.

Scalable Enterprises – direct investments

The Scalable Enterprises – Agriculture & Manufacturing portfolio had an IRR of 6.9 per cent in 2022, about the same level as in 2021 with an IRR of 6.5%, measured in investment currency. The IRR since inception is negative 1.6% but has been steadily improving with two consecutive years of an IRR above 6%. The recent years investments are performing well while some legacy investments are still lagging.

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 inception20222021202020192018201720162015201420132012
Green Infrastructure11.412.28.7
Renewable Energy6.411.302.
Financial Inclusion5.50.210.2-
Scalable Enterprises Direct-
Scalable Enterprises Funds0.41.85.6-12.2-7.4-14.4-4-0.40-3129