Investments in Eastern Europe

NEFCO’s Investment Fund finances economically viable projects with positive environmental impacts. NEFCO’s Investment Fund provides loan and equity financing. In Investment Fund projects, NEFCO can operate as a partner, lender and/or guarantor. In some cases, subordinated loans and loans with equity features can also be provided.


The maximum loan per project under the Investment Fund is EUR 5 million. The loans are given with medium to long maturity and are provided on market terms. When making equity investments, NEFCO’s financial share is usually about 30 per cent and does not generally exceed 50 per cent of the total investment.

Typical funded projects relate to:

• modernisation of industrial production processes
• installation of best available technology in new industrial facilities
• wastewater treatment and waste management
• production of equipment for pollution abatement
• energy efficiency measures
• modernisation of district heating
• environmental consultancy
• production of renewable energy – biomass, wind energy, geothermal energy, small-scale hydropower

Can I apply for funding?
Yes, if you are about to make an investment with a Nordic interest in a private or public sector green project in Armenia, Belarus, Estonia, Georgia, Latvia, Lithuania, Moldova, Poland, Russia or Ukraine.

Investment priority is given to small and medium-sized projects that have positive environmental effects not only for the country where the project is located but also for the Nordic region as a whole. Emphasis is put on projects that reduce harmful discharges into water bodies or soil and those that reduce cross-border airborne emissions. The projects must be deemed to produce relevant environmental impacts in order to merit financing.

NEFCO requires projects financed by the Investment Fund to meet reasonable profitability criteria, but, as long as this can be achieved, the primary focus is on the positive environmental impacts. In addition to the environmental aspects, NEFCO always carefully examines the technical feasibility and financial profitability of all projects.


Through the Investment Fund, NEFCO may provide share capital for environmental investments in projects of interest to the Nordic countries.

Projects financed with NEFCO equity shall be economically viable. However, the primary focus is on positive environmental impacts. NEFCO’s total equity investment per project is a maximum of EUR 5 million. The contribution can be up to 35 per cent of the total equity. If both a loan and equity are provided, NEFCO’s financial share is normally 30-40 per cent of the total project costs, but, in exceptional cases, can reach 50 per cent of the total investment costs.

With regard to exit conditions, the terms are negotiated with the client upfront, but NEFCO normally exits from its equity investments after 5-7 years.

Can I apply for funding?
Yes, if the project has a Nordic interest and the investment will take place in Armenia, Belarus, Estonia, Georgia, Latvia, Lithuania, Moldova, Poland, Russia or Ukraine.

For additional information, please contact:

Bo Nyhus (Denmark)
Senior Investment Manager
bo.nyhus [at]
+358 50 406 3329

Helena Lähteenmäki (Finland)
Senior Investment Manager
helena.lahteenmaki [at]
+358 10 6180 633

Thor Thorsteinsson (Iceland)
Senior Financial Manager
thor.thorsteinsson [at]
+358 50 325 6553

Amund Beitnes (Norway)
Senior Investment Manager
amund.beitnes [at]
+358 50 311 3684

Ulf Bojö (Sweden)
Senior Investment Manager
ulf.bojo [at]
+358 40 527 3699