Frontier Facility

The separate fund, Frontier Facility, is used for projects with a higher risk than those in Norfund’s portfolio and for our most demanding markets.

One of the most important obstacles to investments in developing countries is the insufficient supply of well-prepared and investment-ready projects available to investors, including Norfund. One reason for this is that private investors often lack sufficient capital to meet the investment requirements related to project development, such as environmental impact assessments and legal and technical studies.

In 2019, Stortinget therefore granted 100 million Norwegian kroner to a new facility for project development and risk mitigation, managed by Norfund – the Frontier Facility. This facility allows Norfund to take on higher risk when investing in early phase project development and reduce risk for commercial investors in the most demanding markets, especially in vulnerable states and the Least Developed Countries (LDCs). In these countries in particular, there is limited access to risk capital for project development and risk relief.

The facility serves two purposes:

  • Enabling early phase project development within Norfund’s investment areas
  • Risk mitigation for commercial investors that wish to invest in Norfund funded projects, throughout the project cycle

The facility is to be used for projects with a higher risk in comparison with investments from Norfund’s ordinary investment funds. Norfund is to use these funds to invest in project development that is promising, by providing loans that can later be converted into equity if the project can be matured and is ready for investment. Through this facility, Norfund can take a higher risk of loss of funds. This means that losses through the Frontier Facility must be expected.

An all-female team of sorters pose for a photograph at the recycling hub in Ebute Metta, Lagos, Nigeria on Thursday 14th March 2019.
An all-female team of sorters at the recycling hub in Ebute Metta, Lagos, Nigeria

These projects are managed as a separate facility and are not included in Norfund’s overall portfolio valuation. 

Frontier Facility projects

InvestmentCountrySectorYear committedInstrumentStatusCommitment (MNOK)
Katapult Africa Seed FundAfricaScalable Enterprises – Funds2022Equityactive2.56
NMI FLS valuta guaranteeSoutheast Asia Financial Inclusion2021Foreign exchange guaranteeactive20.0
Lobu Dolum HPPIndonesiaRenewable Energy2021Loanactive8.52
Antler East Africa Fund IAfricaScalable Enterprises – Funds2020Junior Equityactive13.37
Arnergy Solar LtdNigeriaRenewable Energy2019Equityactive17.56
Malthe Winje MaresiKenyaRenewable Energy2019Loanactive1.74
FEI – Facility for Energy InclusionAfricaRenewable Energy2019Junior Equityactive27.54
WeCyclersAfricaGreen Infrastructure2023Convertible loanactive23
VeoliaAfricaGreen Infrastructure2024Equityactive1.7
WestgassAfricaScalable Enterprises – A&M 2024Convertible loanactive20.9