Finland's 'major development financier' eyes investment in Pakistan's TPL Insurance

Finnfund, a major development financier of Finland, has expressed its intent to invest in TPL Insurance Limited, a Pakistan-based subsidiary of TPL Corp Limited, announced TPL Insurance in a notice sent on Thursday to the stock exchange.

"The company is pleased to announce that the Finnish Fund for Industrial Cooperation Limited, a Private Limited Company incorporated in Finland, (“Finnfund”), a major development financier and impact investor, investing in responsible and profitable businesses in the developing countries, has entered into a Letter of Intent, with TPL Insurance Limited,” said TPL Insurance in its filing to the Pakistan Stock Exchange (PSX).

The company informed that upon completion of successful legal and financial due diligence and obtaining all regulatory approvals, Finnfund will look to invest in TPL Insurance Limited.

Founded in 1980, Finnfund made 31 investments with a total worth of 206 million euros in 2020. New investment decisions target mainly (98%) countries of low or lower-middle income, in which the need for sustainable development investments is greatest.

The majority of Finnfund investment were made directly in companies operating in developing countries.

Last year in October, the board of directors at TPL Insurance Limited accorded their approval for an equity investment by DEG – Deutsche Investitions – und Entwicklungsgesellschaft mbH (“DEG”), a wholly-owned subsidiary of KfW Group, a Germany development finance institution of 20 percent equity interest in the company.

“Board of Directors of TPL Insurance Limited (“the Company”) have accorded their approval for an equity investment by based in Cologne, Germany, a major development finance institution, of up to 19.9% equity interest in the Company by way of fresh issuance of ordinary shares other than by way of the rights issue,” informed TPL.