Finnfund issues a EUR 75 million sustainability bond

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Finnfund, a Finnish development financier and impact investor, issues a EUR 75 million sustainability bond.

The 3-year bond carries a coupon referencing 6-month Euribor + 125 bps. The bond offering was allocated to approximately 10 Finnish and international investors, including a portion of dedicated sustainability bond investors/portfolios. The bond represents Finnfund’s first issuance under its newly established Sustainability Bond Framework.

The proceeds from the issue will be used in accordance with Finnfund’s Sustainability Bond Framework to finance and/or refinance eligible green lending, equity investments, and mezzanine financing mainly targeting the objective of climate change mitigation and adaptation and/or improved living and health conditions for unserved groups.

Net proceeds will be allocated to eligible projects with the objective to mobilise debt capital to support Finnfund’s mission to generate lasting impact by investing in businesses that solve global development challenges.

In addition, it contributes to Finnfund’s goal to foster sustainable development by providing investment opportunities for private investors. In its strategy, adopted in January 2022, the company sets one of its targets to fund 50% of its investments with private capital by 2030. Mobilising private capital is key to achieving the UN Sustainable Development Goals (SDGs) in developing countries, given that the UN estimates the financing gap at USD 2.5 trillion per year.

Jaakko Kangasniemi, Managing Director, CEO at Finnfund said: “This is a strong sign of confidence for our impact investing activity. Sustainable development and climate action require funding, and these challenging times highlight the importance of investors like us. The global political and economic turmoil may also create new opportunities for investors.”

Danske Bank A/S acted as the sole lead manager in connection with the offer and issue of the bond.

To follow the work within sustainable finance and to access the Sustainability Bond Framework, the Second Party Opinion and the Sustainability Bond Reports, please visit Sustainability Bond - Finnfund

More information:
Olli Sinnemaa, Chief Financial Officer,,  tel. +358 50 422 6478
Kirsi Pere, Communications Manager,, tel. +358 40 620 9767 (media contacts)

Finnfund is a Finnish development financier and impact investor. We build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges. We invest 200–250 million euros in 20–30 companies in developing countries each year. Our focus sectors include renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions. Today Finnfund’s investments, commitments, and investment decisions total about 1.12 billion euros, half of them in Africa. The company has 90 employees. For more information, please visit