- New commitments 2014 above previous year’s level: EUR 1.47bn
- EUR 855m for investments in future markets
- Major focus on climate and resource protection
COLOGNE, 12-2-2015 — /EuropaWire/ — DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, committed EUR 1.47bn to finance private investments in developing and emerging-market countries in the past year (2013: EUR: 1.45bn). It once again managed to slightly exceed the previous year’s level. The development of financial commitments for German companies was particularly satisfying. With EUR 253m (2013: EUR 152m), commitments for this important target group saw particular growth. “This growth highlights the increasing interest on the part of German companies in the markets in emerging and developing countries. In these countries they harness investment opportunities while at the same time taking on corporate and social responsibility,” said Bruno Wenn, Chairman of DEG’s Management Board.
A loan of EUR 3m was provided to the German horticultural company Selecta Klemm to finance the modernisation of its greenhouses in Kenya. In addition to providing investment finance, DEG enabled Selecta Kenya to realise accompanying measures, among others a health counselling initiative especially for women, and co-financed a feasibility study to facilitate the company’s changeover to a more sustainable energy supply. With the financing and promotional programmes offered in 2014, DEG reached a total of around 100 German companies.
Its other strategic goals, which include Africa and other future markets, financing small and medium-sized enterprises (SME), risk capital and climate and environmental protection, were also met, or even significantly exceeded in comparison to last year.
EUR 855m (2013: EUR 630m) were allocated to investments in future markets, such as Bhutan, Cambodia and Tanzania. A total of EUR 416m of these commitments (2013: EUR 326m) was assigned to Africa. “We are convinced that entrepreneurial initiative is needed to tap into future markets, to facilitate progress and to give people new opportunities,” emphasised DEG Chairman, Wenn.
New financial commitments earmarked for investments for SMEs reached a new record level in 2014, with a commitment volume totalling EUR 905m (2013: EUR 794m). Risk capital financing in the form of equity investments and quasi-equity loans totalled EUR 666m in 2014 (2013: EUR 572m). DEG provided EUR 691m (2013: EUR 649m) – almost half of its new commitments 2014 – for investments related to climate and environmental protection and adjustments to climate. DEG financings, for example, enable production of 4,000 GWh p.a. of green electricity to supply almost 5.5m people with energy.
In addition to providing financing with its own funds, DEG offers promotional programmes. It uses funds for accompanying measures that aim at further increasing the development impact of the co-financed investments and co-finances pilot projects, innovative business models and feasibility studies. In 2014, a total of around EUR 30m was made available for this purpose (2013: EUR 28m).
A comparison of the continents shows that in 2014 the lion’s share of new commitments, at EUR 603m, was destined for Asia (2013: EUR 492m). Viewed by business sector, the focus of new business was once again on the financial sector at EUR 490m (2013: EUR 479m). To reach, in particular, small and medium-sized enterprises in the partner countries, DEG finances local banks and other financing institutions that provide them with long-term investment capital. A total of EUR 460m (2013: EUR 314m) was allocated to infrastructure investments in the fields of renewable energy, health care and transport, for example.
DEG strives to achieve new business commitments at a similar level in 2015, while continuing to expand commitments in future markets, as well as the share in financing and advising German companies.
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