Norfund has become an investor in Nordic Impact Cooperation (NIC), an investment platform that provides equity financing for solar projects.

The Norwegian investment fund for developing countries is investing €19m for a 33.04% share in NIC alongside Norsk Solar and Finnfund.

Norsk Solar said, as part of the agreement, Norfund’s 35% direct ownership in Norsk Solar’s 11MW project in Vietnam will be transferred to NIC. 

NIC was set up by Finnish development financier and impact investor Finnfund and solar power producer Norsk Solar in 2021 with a mandate to jointly invest in projects in high-growth markets where access to renewable energy is necessary to support sustainable growth.

Inge Stølen, a senior investment manager at Norfund, said: “Norfund is pleased with the progress Norsk Solar has made in Vietnam and we are happy to see yet another Norwegian developer of renewable energy succeed in establishing itself in developing markets.

“We look forward to working closely with Norsk Solar and Finnfund also in other emerging markets to increase access to affordable, clean energy while creating jobs and avoiding CO₂ emissions.”

Øyvind L Vesterdal, the CEO of Norsk Solar, said: “Norsk Solar is proud to have both Norfund and Finnfund as partners in the Nordic Impact Cooperation platform. NIC is an innovative model for climate investments by state-owned impact investors, helping to make project financing highly efficient to allow for quicker execution on projects.

“This is especially important in markets where energy demand is soaring and there is an immediate need for reliable, affordable clean power.”

Jussi Tourunen, an associate director and the head of Finnfund’s energy and infrastructure portfolio, said “we are looking forward to investing in new projects and scaling the platform further” in the time to come, helping to secure energy access in growing economies while providing cleaner and cheaper power to the private sector.

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