The Danish Green
– The fund improves the financing options for green projects and thereby contributes to the sustainable development of our society. The companies that implement the green investments will experience cost savings, which can enhance the competitiveness. Moreover, the activities of the fund will have a positive environmental effect due to e.g. environmental savings, increased production of renewable energy sources, more resource-efficient utility of water and materials or better waste recycling.
Our focus is to develop financing concepts for green, economically viable projects. When we have demonstrated our activites succesfully over a number of years, it might create the possibility of attracting additional financing and investor capital for green projects in general.
– Our purpose is to co-finance projects that facilitate sustainable development, generally within the following areas:
- Environmental savings
- Renewable energy sources
- Resource efficiency
We are actually “building bridges”. This could be a bridge that closes the gap between funding from traditional financial institutions and equity capital. Another example is a bridge in terms of time; a company might have proven to be commercially viable, but has not yet presented enough accounts in order to recieve financing from a traditional financial institution.
– The Danish Green Investment Fund is able to grant loans to all types of privately-held companies and non-profit housing associations as well as puplic companies and institutions, whose budgets are seperate from the state, the regions and the municipalities.
– We grant loans to sustainable projects. However, the word “sustainable” also refers to the financial aspect of the project, requiring the capability to repay the loan. The fund supplements excisting loan options in the market and thereby increases the availability of financing. This results in, all things considering, an increased number of projects being executed over a shorter amount of time.
– Focus on renewable energy, environmental savings and resource efficiency benefits both the environment as well as the economy. Executing more green projects can contribute to secure future welfare and growth in Denmark. For the individual company, the projects result in savings or resource gains, which increase the competitiveness. It is a win-win-win-situation and therefore an obvious area in which financing options should be strengthened.
– ”Green” projects is a broad term covering project investments within the areas of renewable energy, environmental savings and resource efficiency that reduce the resource consumption and benefit the environment.
– The Danish Green Investment Fund is able to co-finance green projects to a greater extent than The Danish Growth Fund. We are able to finance all sizes and types of companies, not only SMEs, as it is the case with The Danish Growth Fund. Loan amounts and maturity are also areas where we have a larger degree of freedom.
– The Danish Green Investment Fund is co-funding projects facilitating sustainable development in Denmark. Our primary focus is Danish companies. Should they need financing of activities abroad, we will assess if we can contribute with funding in the specific context. Secondary, we fund foreign companies wishing financing of projects which are based in Denmark.
– Contact an employee of The Danish Green Investment Fund.
– The fund will conduct an initial assessment of the four financing criteria that consist of:
- Green effects: The project must contribute to the sustainable development of society, and it must comprise a documented sustainable effect, which continuosly can be measured and reported.
- Economy: The project must be economically viable. The repayment of the loan should be probable within the agreed timespan. Technologies, which have not yet proven to be commercially viable, cannot achieve financing from The Danish Green Investment Fund.
- Market potential/demand: It should be possible to place the project in a context, where product, knowledge and/or technology are scalable and thereby contribute to growth e.g. in the form of increased export volume.
- Socio-economic return: The financing activities of the fund must contribute to growth and job creation.
– Experiences from The Danish Growth Fund show that increased access to financing leads to increased project execution and thereby new jobs. Moreover, the green industies are growing rapidly and thereby hold a lot of potential.
– The board, appointed by the Minister of Business and Growth, consists of:
- Jørgen Tang-Jensen, chairman of the board and CEO of VELUX A/S
- Hilde Kjelsberg, vice president and head of credit, Nordic Investment Bank (NIB)
- Jan Bach Jensen, CEO, Energi Midt
- Lars Pehrson, CEO, Merkur Cooperative Bank
- Ulla Röttger, CEO, I/S Amager Ressourcecenter
- Lars Schrøder, CEO, Aarhus Vand
– For payment corresponding to the risk associated with the individual project, The Danish Green Investment Fund is able to issue loans pari-passu as well as subordinated loans and loans without any collateral. Generally, the fund are able to finance up to 60 pct. of the total costs associated with the given project. The individual loan amount ranges from DKK 2 million up to DKK 100 million with a maturity of up to 30 years depending on the specific case.
– The Danish Growth Fund serves as secretariat of The Danish Green Investment Fund. The conditions of employment for managers and other employees of The Danish Growth Fund are maintained. However, the management of The Danish Growth Fund must propose all aspects related to the activities of The Danish Green Investment Fund to the board of The Danish Green Investment Fund.
The function as secretariat include administration tasks, marketing, credit facility, proposal of business cases to the board, disbursement of loans and continuous observation and monitoring of the portfolio.
– The activities of The Danish Green Investment Fund will be monitored to ensure that more green projects are initiated, but also executed faster. This will enhance the sustainable development of the Danish society.
Additionally, the fund must be economically viable in order to ensure a positive double bottom line.
– We operate with a double bottom line. The goal is to facilitate sustainable development in Denmark while ensuring the fund will not result in a deficit. The fund is not a subsidized financing facility. The price of the individual loan will match the underlying risk associated with the given project. The price must ensure achievement of the fund’s financial objectives without serving as a barrier for the enhancement of sustainable development.
– In principle, The Danish Green Investment Fund is able to co-fund projects within all industries. The general purpose is to contribute to the sustainable development by financing smaller or larger green projects.