Norfund seeks to maximize our development impact by ensuring that our capital is deployed where it contributes the most. Circulating capital by exiting investments where we are no longer needed is a key part of our strategy.
We strive to be a predictable, long-term investor, but we will not retain ownership for longer than necessary. Exit strategies and alternatives are prepared at the time of the investment, and we will seek to exit when Norfund’s participation is no longer crucial for the sustainable and economic continuation of the activities of the investee. Capital and profit generated by the investments are reinvested in new businesses in which there is a greater need for our risk capital.
At regular intervals we do exit analysis of exited portfolio companies. The latest was done in 2022.
What is defined as an exit?
A project is considered exited when all Norfund’s instruments with the investee are exited and no direct or indirect relationship exists any longer.
Exited investments in 2023
During 2023, we exited 20 investments made under the development mandate. As the climate mandate is still quite new, we have not exited any investments yet. Most of the exits are repaid loans.
The number of exits in 2023 is higher than in previous years, reflecting our growing portfolio and strategic aim to recycle more capital. On top of full project exits, other reflows have also increased significantly.
| Project | Department | First investment year | Invested amount NOK | Country | Sector | IRR since inception (investment currency) |
|---|---|---|---|---|---|---|
| AB Bank | FI | 2017 | 163.2 | Vietnam | Banking | 5.12% |
| Access Bank | FI | 2017 | 116.7 | Nigeria | Banking | 8.17% |
| Across Forest AS | SE | 2012 | 1.8 | Nicaragua | Forestry and | 10.41% |
| BRAC Bank | FI | 2010 | 122.2 | Bangladesh | Banking | 10.35% |
| Brighter Life Kenya 1 | CE | 2020 | 56.2 | Kenya | Solar power | 7.93% |
| Cofina Senegal SA | FI | 2021 | – | Senegal | Microfinance | N/A |
| Credicorner | FI | 2019 | 63.8 | El Salvador | Microfinance | 5.09% |
| Green Resources USD | SE | 2009 | 819.0 | Sub-Saharan | Forestry and | 10.00% |
| Greenlight Planet | CE | 2019 | 140.4 | Kenya | Solar power | 13.98% |
| H1 Upington | CE | 2015 | 73.5 | South Africa | Solar power | 98.16% |
| Kinangop | CE | 2013 | 94.3 | Kenya | Wind power | N/A |
| LOLC | FI | 2020 | 95.6 | Cambodia | Microfinance | 8.48% |
| M-kopa | CE | 2017 | 127.0 | Sub-Saharan | Solar power | 14.31% |
| Nam Sim | CE | 2011 | 34.2 | Laos | Hydropower | 4% |
| ONE Bank | FI | 2018 | 120.9 | Bangladesh | Banking | 5.94% |
| Prasac | FI | 2013 | 355.8 | Cambodia | Microfinance | 9.02% |
| Prospero | FI | 2011 | 57.7 | Regional | Microfinance | 5.87% |
| Scatec Mocuba | CE | 2016 | 13.4 | Mozambique | Solar power | -20.87% |
| TPS Dar es Salaam | SE | 2011 | 55.6 | Tanzania | Tourism | 6.85% |
| UAP Properties Limited | SE | 2013 | 34.5 | South Sudan | Real estate a | 8.45% |
| Total | 2,545.6 | 8.32% |