German Investment Corporation

Last updated
Deutsche Investitions- und Entwicklungsgesellschaft mbH
Company typePrivate corporation (GmbH)
IndustryDevelopment Finance
Founded1962
Headquarters Cologne, Germany
Key people
Roland Siller [1] (CEO)
Monika Beck [2]
Philipp Kreutz [3]
Products Loans, Equity Financing, Feasibility Studies, Advisory Services, Consulting
Total assets Equity Capital €2.5 billion (2017)
Number of employees
650 (2021)
Parent KfW
Website https://www.deginvest.de/
Former Logo DEG-Logo am Gebaude in Koln (3358-60).jpg
Former Logo

Deutsche Investitions- und Entwicklungsgesellschaft (DEG) is a Development Finance Institution (DFI) and a subsidiary of KfW Group. It was founded in Cologne in September 1962 as a federally owned company by the former Federal President Walter Scheel. [4] Since its foundation, DEG has been headquartered in Cologne. In 2008, DEG moved into a modern, energy efficient office building in the city centre. DEG has 20 representative offices across the world, inter alia in Bangkok, Beijing, Istanbul, Jakarta, Johannesburg, Lagos, Lima, Mexico City, Nairobi, New Delhi, São Paulo and Singapore. [5] In 2021, DEG employed a staff of approximately 650, both in Germany and abroad. [6] DEG generated new business totaling EUR 1.5 billion in 2021 and the balance sheet total amounted to EUR 5.328 billion. Since its foundation, DEG has co-financed almost 1,300 companies in more than 120 countries. [7]

Contents

With a portfolio of around EUR 9.2 billion in nearly 80 countries DEG is one of the world's largest private-sector development financiers.

Mission and products

DEG finances long-term investments of private companies in developing and emerging-market countries. As one of the world's largest development finance institutions, it promotes private sector companies to contribute to sustainable economic growth and improved living conditions in these countries. [8] DEG focuses on projects and corporate finance in Africa, Asia, Latin America as well as in Central, Eastern and South-Eastern Europe. Its financing products, which are offered at market-oriented conditions, comprise

Among DEG's customers are corporates, financial institutions, funds and project financiers. Moreover, DEG offers advisory services, which are offered to both companies willing to invest and institutions promoting private-sector cooperation in its partner countries. Furthermore, DEG - as one of the three official partners - implements the develoPPP.de programme of the Federal German Ministry for Economic Co-operation and Development (BMZ). develoPPP.de [10] targets companies that invest in developing and emerging-market countries and are seeking ways to shape their corporate commitment in the long term. These develoPPP.de funds are mainly allotted to projects concerning environment, training and upskilling, workplace security and to outstanding pilot projects.

Since 2017, DEG offers financial support and solutions via German Desks [11] together with local partner banks and local German Chambers of Commerce Abroad. A local bank employee who operates in both languages and cultures, handles particular needs of German firms or supports investment financing for local companies wishing to acquire German equipment, for example. [11]

In all its financing activities, DEG applies the IFC Performance Standards, [12] including the relevant "Environment, Health and Safety" guidelines as well as the ILO standards. The Performance Standards, developed by the International Financing Corporation (IFC), are the most widely used assessment standards in international development financing. [12]

To ensure individuals, groups, communities or any other parties who believe to be adversely affected by a project financed or planned by DEG the right to be heard and the right to complain, DEG developed an Independent Complaint Mechanism (ICM) including an Independent Expert Panel. The Panel decides whether the complaint is admissible, responds to the complaint and is responsible for taking further possible steps. [13]

Contribution to the SDGs

Being part of the German development cooperation, DEG promotes and contributes to the 2030 Agenda including the Sustainable Development Goals (SDGs) adopted by the UN. Among these goals is the reduction of poverty by promoting job creation and income generation in less developed and rural regions. Moreover, DEG's customers employed more than 1.5 million people, produced green energy for around 26 million people and generated local income of EUR 67 million. [14] In 2017, 72% of the companies supported by DEG contributed to the alleviation of poverty (SDG No. 1) as well as 88% of them fostered decent work and economic groth (SDG No. 8). [14]

Cooperation

DEG closely coordinates its promotional activities with other European Development Finance Institutions, many of which have joined in the association of the European Development Finance Institutions (EDFI). [15] Further cooperation partners of DEG are the International Finance Corporation (IFC), a member of the World Bank, the European Bank for Reconstruction and Development (EBRD), as well as numerous local and regional development companies. The pooling of financing capacities and in-house knowledge leads to broader developmental efficacy and greater sustainability.

KfW Group

KfW is the parent company of DEG. The subsidiaries of KfW include: [16]

See also

Related Research Articles

<span class="mw-page-title-main">International Finance Corporation</span> World Bank Group member financial institution

The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of the World Bank Group and is headquartered in Washington, D.C. in the United States.

<span class="mw-page-title-main">French Development Agency</span>

The French Development Agency is a public financial institution that implements the policy defined by the French Government. It works to fight poverty and promote sustainable development. This public institution is active in Africa, Asia, the Middle East, Latin America, the Caribbean and the French overseas territories, where it finances and supports projects that improve living conditions for populations, promote economic growth and protect the planet.

<span class="mw-page-title-main">KfW</span> German state-owned investment and development bank

The KfW, which together with its subsidiaries DEG, KfW IPEX-Bank and FuB forms the KfW Bankengruppe, is a German state-owned investment and development bank, based in Frankfurt. As of 2014, it is the world's largest national development bank and as of 2018 Germany's third largest bank by balance sheet. Its name originally comes from Kreditanstalt für Wiederaufbau. It was formed in 1948 after World War II as part of the Marshall Plan.

DEG or deg may refer to:

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, often simply shortened to GIZ, is the main German development agency. It is headquartered in Bonn and Eschborn and provides services in the field of international development cooperation and international education work. The organization's self-declared goal is to deliver effective solutions that offer people better prospects and sustainably improve their living conditions.

An international financial institution (IFI) is a financial institution that has been established by more than one country, and hence is subject to international law. Its owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders. The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions exist and are technically IFIs. The best known IFIs were established after World War II to assist in the reconstruction of Europe and provide mechanisms for international cooperation in managing the global financial system.

<span class="mw-page-title-main">National Bank for Agriculture and Rural Development</span> Government owned All India Financial Institution and Regulatory Body

The National Bank for Agriculture and Rural Development (NABARD) is an All India Financial Institution (AIFI) and an apex Supervisory Body for overall supervision of Regional Rural Banks, State Cooperative Banks and District Central Cooperative Banks in India. It was established under the NABARD Act 1981 passed by the Parliament of India. It is fully owned by Government of India and functions under the Department of Financial Services (DFS) under the Ministry of Finance.

<span class="mw-page-title-main">Development finance institution</span> Banking company that provides risk capital for economic development projects

Development financial institution (DFI), also known as a Development bank, is a financial institution that provides risk capital for economic development projects on a non-commercial basis.

The Association of German Public Banks is a leading association within the German banking sector, bringing together most of the German public banking sector except the local-level savings banks. Its membership includes 63 banks, including the Landesbanks that are also members of the Deutscher Sparkassen- und Giroverband (DSGV) and form part of the Sparkassen-Finanzgruppe, and promotional and development banks owned by the Federal Republic of Germany or the individual German federal states.

<span class="mw-page-title-main">Black Sea Trade and Development Bank</span> Organization

The Black Sea Trade and Development Bank (BSTDB) is an international development finance institution serving the eleven member founding countries of the Black Sea Economic Cooperation, a regional economic organization. It supports economic development and regional cooperation by providing loans, guarantees, and equity for development projects and trade transactions. BSTDB supports both public and private enterprises in member countries and does not attach political conditionality to its financing.

<span class="mw-page-title-main">Railpool</span>

Railpool is a European rolling stock leasing company based in Munich, Germany. It provides rolling stock financing and leasing, along with maintenance, consultancy, and other services.

ASTARTA Holding is a vertically integrated agro-industrial holding company in Ukraine, a public European company. It produces food products with a focus on global markets.

<span class="mw-page-title-main">First Ukrainian International Bank</span> Ukrainian bank (founded 1991)

The First Ukrainian International Bank, also known as FUIB, is one of the leading Ukrainian banks, primarily owned by the oligarch Rinat Akhmetov, who is associated with SCM Holdings.Established in 1991, the bank is headquartered in Kyiv, Ukraine. As of January 1, 2018, FUIB served 1.2 million private clients and more than 40,000 corporate clients.

TransCapitalBank is a Russian commercial bank with a share of foreign capital which includes the European Bank for Reconstruction and Development (EBRD), German Investment Company DEG and International Finance Corporation (IFC). Headquartered in Moscow, Transcapitalbank operates in more than 18 regions, providing financial services to 30,000 corporate customers and over 212,000 retail clients. Transcapitalbank is a top 50 bank in Russia by assets and by equity. The bank is also ranked #7 by lending to small and medium enterprises (SMEs). Transcapitalbank is a full-service bank.

Proparco is a development finance institution partly owned by the French Development Agency (AFD) and private shareholders from the developed countries.

<span class="mw-page-title-main">Futuro Forestal S.A.</span> German-Panamanian reforestation company

Futuro Forestal S.A. is a German-Panamanian reforestation company that operates in Latin America. Established in 1994 in Panama, it is headquartered in Panama City. Futuro Forestal focuses on impact investment management in the tropical forestry industry. To date, the company has planted over 8,000 hectares of teak and mixed hardwood plantations on deforested pastureland, often under the Forest Stewardship Council (FSC) standard.

<span class="mw-page-title-main">IPDC Finance</span>

IPDC Finance Limited is a private sector financial institution of the country. This is a public limited company and listed in both Dhaka Stock Exchange and Chittagong Stock Exchange. Established in 1981, IPDC is the first private sector financial institution of the country. The company's products and services ranges from corporate finance and advisory services in corporate sector, middle market supply chain finance in SME sector to retail wealth management and retail finances in retail sector. The company is headquartered in Dhaka and has operations in Chittagong, Sylhet, Gazipur, Narayanganj, Bogra, Jessore, Mymensingh, Uttara, Dhanmondi and Motijheel.

African Reinsurance Corporation, generally known as Africa Re, is a reinsurance company based in Lagos, Nigeria. Africa Re was founded on 24 February 1976 in Yaoundé, Cameroon making it Africa's first continental reinsurer. The company operates in 41 countries of the African Union through approximately 107 insurance/reinsurance companies.

<span class="mw-page-title-main">KfW IPEX-Bank</span>

The KfW IPEX-Bank GmbH is a German commercial bank that is the wholly owned subsidiary of German KfW that focuses on development financing. Since 1 January 2008 it has been a legally independent bank governed by the German Banking Act. Its work focuses on international project and export financing. The bank's headquarter is located in Frankfurt, where the KfW IPEX-Bank uses the Westarkade, which was completed in 2011.

Joachim Nagel is a German economist who has been serving as President of the Bundesbank since 2022. Before he was a senior manager of the Bank for International Settlements since 2020, having been a member of the board of the Deutsche Bundesbank from 2010 to 2016 and then a member of the board of the KfW Bankengruppe from 2017 to 2020. He was appointed President of the Deutsche Bundesbank on 1 January 2022, succeeding Jens Weidmann who resigned.

References

  1. ↑ "Roland Siller (CEO)". www.deginvest.de.
  2. ↑ "Monika Beck". www.deginvest.de.
  3. ↑ "Philipp Kreutz". www.deginvest.de.
  4. ↑ "DEG History". Archived from the original on October 25, 2013.
  5. ↑ "Our locations". www.deginvest.de.
  6. ↑ "DEG at a glace" (PDF). www.deginvest.de.
  7. ↑ "DEG Annual Report 2017" (PDF). www.deginvest.de. Retrieved August 23, 2018.
  8. ↑ "About DEG". Archived from the original on 2013-10-25. Retrieved 2013-10-25.
  9. ↑ "BSS: DEG is your partner beyond financing". www.deginvest.de.
  10. ↑ "develoPPP.de". www.deginvest.de.
  11. 1 2 "German Desk – Financial Support and Solutions". www.deginvest.de.
  12. 1 2 "Overview". www.ifc.org.
  13. ↑ "accessed on 9 October 2017" (PDF).
  14. 1 2 "Our impact: Contributing to the SDG". www.deginvest.de. Archived from the original on 2021-06-05. Retrieved 2018-08-23.
  15. ↑ "EDFI | European Development Finance Institutions". EDFI.
  16. ↑ "Subsidiaries and Participations". www.kfw.de. Archived from the original on 2020-09-29. Retrieved 2013-10-25.
  17. ↑ "Export Finance | Project Finance". www.kfw-ipex-bank.de.
  18. ↑ "Home". www.dena.de. 14 November 2023.

Commons-logo.svg Media related to Deutsche Investitions- und Entwicklungsgesellschaft at Wikimedia Commons

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.