Draft act on the State’s new capital investment company sent out for comments – Finnfund not to be merged with the new Finnish Industry Investment

The Ministry of Economic Affairs and Employment will organise a consultation round on the draft act on the new state capital investment company from 10 April to 8 May 2024. The new company will be given an industrial policy task with a stronger focus on economic growth, renewal and promotion of investments.

The Government proposal would amend the Act on Finnish Industry Investment Oy and the Act on Climate Fund Oy. The Act on Business Finland Venture Capital Oy would be repealed. As a result of the arrangement, four companies will form Finnish Industry Investment Ltd, which will operate on market terms. The company’s subsidiary, Teollisuustuki Oy, will provide state aid funding.

The Ministry also examined whether Finnfund could be incorporated into the new entity. The draft act does not propose that Finnfund be merged with the new Finnish Industry Investment.

Finnfund will continue as an impact investor that improves living conditions in developing countries by financing impactful and responsible business projects.

“Although we actively cooperate with Finnish companies that have valid solutions for emerging markets, our mission, customer base, funding base, and the international rules and requirements regarding development financing differ from those of Finnish Industry Investment. During the preparation, it became clear that it was not worth combining such different operators. The draft law clarifies the situation and gives us a good basis to continue,” says Finnfund’s Managing Director Jaakko Kangasniemi.

The new company will be given an industrial policy task with a stronger focus on economic growth, renewal and promotion of investments. Another aim is to advance investments and exports related to the opportunities created by new technologies and the clean transition.

Read more about the new state capital investment company.

More information:

Jaakko Kangasniemi, Managing Director, Finnfund, jaakko.kangasniemi@finnfund.fi, tel. +358 40 577 7676
Unna Lehtipuu, Communications Director, Finnfund, unna.lehtipuu@finnfund.fi, tel. +358 40 624 0896