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PensionDanmark investing DKK 200m in new climate investment fund

PensionDanmark is investing DKK 200m in the Danish Climate Investment Fund, which was established at the initiative of the Danish Investment Fund For Developing Countries (IFU). The Fund will be investing in climate-related projects in developing countries. All of the projects will make extensive use of Danish technology and know-how.

"The Climate Investment Fund is a brand new type of public-private partnership in which government funding and private pension investments are allied in making the most of the expertise of Danish companies in the climate and energy sector, and for which demand and market potential is high in many developing countries," says CEO Torben Möger Pedersen, PensionDanmark, who today helped present the Fund at a press conference attended by, among others, Minister for Development Cooperation Rasmus Helveg Petersen and Minister for Climate, Energy and Building Martin Lidegaard.

PensionDanmark has committed DKK 200m to the new climate fund. The other investors are the pension funds PKA and PBU, the private investment fund Dansk Vækstkapital, the Investment Fund for Developing Countries (IFU) and the Danish Government. The total investment commitment is DKK 1.2bn. The Fund will provide an opportunity for other private investors to commit a further DKK 200m.

IFU will be the manager of the Fund, which is expected to yield a return of around 12 per cent per annum.

"IFU is a competent and experienced investor with excellent results from projects in many countries. We are expecting the Danish Climate Investment Fund to deliver solid returns to our members in the coming years, while serving to boost the standing of Danish companies in the new growth markets," says Torben Möger Pedersen, who will be a member of the investment committee of the fund.