Financial Institutions

• DanskeBank www.danskebank.dk• JyskeBank www.jyskebank.dk• NordeaBank www.nordea.dk• Sydbank www.sydbank.dk

Real Estate finance institutes

• BRFKredit www.brf.dk• NordeaKredit www.nordeakredit.dk• Nykredit www.nykredit.dk• RealkreditDanmark www.rd.dk• Totalkredit www.totalkredit.dk

Leasing Companies

• FinansNordA/S www.finansnord.dk• GECapitalEquipment FinanceAB www.gefin.com• JyskeFinans www.jyskefinans.dk• NordaniaLeasing www.nordania.dk• NordeaFinans www.nordeafinans.dk

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Whetheryourcompanyconsiderstorelocate,consolidate,setupnewproductionfacilities,isonthelookoutfornewinnovationpartnersorotherstrategicbusinesssolutionsinEurope,InvestinDenmarkisagoodplacetobegin.Weprovidecustomisedinformationandservicesfreeofchargeandinfullconfidentiality.

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Facts...September 2007

F InanCIng In DEnmaRk

There is a great deal of focus on foreign investment initiatives in Denmark and the Danish government greatly encourages foreign investments. a wide range of sources of finance exists in Denmark, from public incentives and private investors to banks, venture capitalists and institutional investors.

The choice of financing will depend on the company and its focus of business activities, the management, the stage of development of the company, the amount of capital needed, etc. Each company must be assessed individually when seeking finance in order to choose the right finance partner. It is highly recommended to seek professional advice when negotiating with investors and finance institutions.

Below you will find a brief outline of different types of sources of finance.

Denmark offers ...•Supportoffreetradeandnon-discriminationofforeigninvestors•Awiderangeofsourcesoffinance•Generalpublicandprivateincentives•Favourablemortgagefinancingofrealestate•Awell-establishedmarketforventurecapitalandprivateequity

BanksIfacompanyisconsideringsettingupoperationsinDenmark,itisimportanttodiscussthematterwithabankintheintroductoryphasesinceDanishbanksarepreparedtoofferadviceandareabletomeetmanyofthecompany’sneeds.TheDanishbankingsystemisveryefficientandhasagoodITinfrastructuremakingiteasyandfasttoopenanaccount.Itisnoproblemhandlingcomplexbankingtransactionsandevensmallbankshaveahighdegreeofcompetence.SeveralmajorNordicbankshaveapresenceinDenmark.

Awiderangeoffinancingoptionsisavailabletocompanies’day-to-dayoperationsandfixedassetinvestments.Inadditiontoordinarybankingtransactions,thebanksalsoofferfinancialservicessuchasinsurance,mortgagefinancing,realestateservices,assetmanagementandleasing.Danishbanksarefaraheadinelectroniccashmanagement.Thebankshavedevelopedelectronicbankingsystemsthatmaybeadjustedtotheindividualneedsofcompanies,includingintegrationwithfinancialmanagementsystems.Thebankingsystemscanhandleaccountswithbanksinothercountries,controlcashflowsandmakeitpossibletoretrieveinformationandmanageliquidityefficientlybothinandoutsideDenmark.

made in cooperation with

more information...

www.statbank.dk

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Denmarkhastwoclearingsystemsinwhichpaymentsarecleared.UDUShandlesclearingoflocalpaymentsinDenmarkmadeviathebanks’accountsintheDanishcentralbank.Thesystemisefficientandfast.TheothersystemisPBS.PaymentsclearedbyPBSarepaymentproductswhichoptimisetheadministrativeroutinesofcompanies.PBSisownedbytheDanishbanks.

Thepayrollsystem,Dataløn,isthelargestandmostcommonsystemforpayandstaffadministration.Itisusedbymorethan85,000businessesandpaysoutsalariesandwagestoabout1.3millionDanes.Regardlessofthepayrollsystemchosen,itmaybeadjustedtotheindividualbusiness.Thesystemscanhandleallroutinesrelatedtostaffadministration,includingcalculationoftaxesanddutiestothepublicauthorities.

PBShandlesDanishandinternationalpaymentcards,includingDankort(Denmark’snationaldebitcard),VisaandMasterCard.Furthermore,PBShasextensiveexpertiseinhandlingcardtransactionsandmasstransactions.DankortarewidelyusedandvirtuallyallDanespossessone.Dankorthavemoreorlessreplacedcashdepositsandcheques.

Thebankshavedevelopedajointtransferformforthecollectionofdebtorpaymentstotheeffectthatamountsduearecrediteddirecttotherelevantaccount.Thedebtorscaneffecttheirpaymentsinallbanksandatpostofficesorviaanelectroniclinktothebank.Transferformshaveareferencenumberwhichthecreditorcanuseforidentifyingthedebtorandforautomaticreconciliation.

BanktransfersarethemostwidelyusedpaymentmethodbybusinessesinDenmark.Thebeneficiarycanreceiveadviceofthepaymenteitheronpaper,byletterorelectronicallybywayofafilefromthebank.

LargelyallDanishbanksofferawiderangeofcashmanagementproducts.Itisagoodideatoinvolvethebankintailoringtheoptimumcashmanagementset-upsothatthebusinessandthebankcanidentifytheneedsandfindpossiblesolutionsthatmatchtheinternalprocessesofthebusiness.

Degree to which banking and financial services efficiently support business activities. The higher the score the better.

Source:

ImD 2007

more information...

www.pbs.dk

more information...

www.multidata.dk

0 2 4 6 8 10

Banking and �nancial services

France

Germany

UK

Belgium

Ireland

Sweden

Netherlands

USA

Denmark

Real estateDenmarkhasauniquemortgagefinancingsystemwhichisrenownedinternationallyforitsmanyqualities.TheDanishmortgagemarketischaracterisedbyefficiency,agoodproductmix,distributionchannelsandadvisoryandinformationsystems.Mortgageloanscanbeadjustedtomatchtheindividualneedsofthebusinessandmayhavetermstomaturityofupto30years.

RealestateinDenmarkcanbefinancedbywayofmortgageloans.Around60–80%ofthevaluationmaybefinancedbymortgagebondsdependingonthetypeofrealestate.Theremaining20–40%shouldbeprovidedbywayofownfundspossiblycombinedwithfixedassetfinancingormortgagedeeds.Theproportionofownfundsdependsonthetypeofproperty,theborrower’sfinancialposition,etc.

Covered bonds (SDO) and Covered mortage bonds (SDRO)FromJuly1st2007banksandotherfinancialinstitutionshavebeenabletoissuebondsbackedbymortagesonproperty.IncontrasttoexistingDanishmortgagebonds,thesenew,so-calledcoveredbondsmeettheEUrequirementsforongoingmonitoringofthevalueofthesecurity/property.

LeasingIncreasinglymorebusinessesleasetheirmachineryandequipmentinsteadofowningthem.Leasingstrengthenstheliquidityandmakesthebusinessmoreflexibleanddynamic.TherearemanyleasingcompaniesinDenmarkofferingindividualfinancingsolutionsbasedonthecompany’sneeds.Itispossibletoleaselargelyalltypesofassets,forinstanceproductionmachinery,ITequipment,officefurniture,agriculturalmachinery,cars,vansandtrucks.

Venture capital CompanieswishingtoexpandinDenmarkcanapplyforventurecapital.AlargenumberofventurecapitalfirmshavebeenestablishedinDenmark,offeringequityforestablishment,developmentandexpansionofgrowthcompanies.

Venturecapitalisarelativelywidetermcomprisinggovernmentgrantedfunds,jointventurefunds,bank/insurance/pensionfunds,institutionalfunds,corporateventuringetc.ThereareseveralcorporatefinancingcompaniesownedbyrenownedDanishcompanieslikeDanfoss,CarlsbergandNovowithatotalofDKK3billionforinvestmentinnewtechnology,marketsorproductsthatfittheircorporatestrategy.

ThewebsiteoftheDanishVentureCapitalAssociationoffersmoreinformationandalistofthemajorityofDanishventurecapitalfirms.

Private investors/business angels Companiesnotlookingforventurecapitalcanapplyforcapitalandseekmanagementexpertisefromprivateinvestorsandbusinessangels.Thecapitalmaybeofferedasordinaryloans,convertibleloansorsharecapital.AnationalnetworkofbusinessangelshasbeenestablishedinDenmarkbyVækstfonden(DanishInvestmentFund)andtheDanishMinistryofEconomicandBusinessAffairs.ThecoordinatorofthisnetworkistheDanishInvestmentFund,whichalsooffersloansandguaranteesforhigh-riskprojects.TheDanishBusinessAngelsNetworkispartoftheDanishVentureCapitalAssociation,AEuropeanBusinessAngelsNetworkhasalsobeenestablished.

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more information...

www.dvca.dk

more information...

www.vaekstfonden.dk

www.dban.dk

www.dvca.dk

www.eban.org