About Denmark’s Recovery Fund (Danmarks Genopretningsfond)
Danmarks Genopretningsfond A/S is a state owned limited liability company with a capital of up to DKK 10 billion. The objective of Danmarks Genopretningsfond is to make capital contributions to undertakings in Denmark that are affected by the COVID-19 outbreak and are significant and of substantial importance to Danish society. Capital contributions can only be made to undertakings which were financially solid prior to the COVID-19 outbreak. Capital contributions shall be made with a view to restoring the capital structure of such undertakings.Download application form (in Danish)
Capital contributions from Danmarks Genopretningsfond must not only ensure that the undertakings just manage to survive the COVID-19 crisis, but also ensure that they will be able to contribute to the economic prosperity and growth in Denmark.
Danmarks Genopretningsfond is “Investor of last resort”. This means that Danmarks Genopretningsfond alone can provide capital contributions if the undertaking cannot obtain the necessary sustainable financing on existing and functioning markets.
Danmarks Genopretningsfond may only make capital contribution within the scope of the regulatory framework applicable to Danmarks Genopretningsfond (it being the European Commission’s decision on 20 November 2020 and governmental order no. 6 of 7 October 2020 as adopted by the Finance Committee of the Danish Parliament on 22 October 2020). The board of Danmarks Genopretningsfond has also adopted a set of overall invest terms describing the spectrum of financial instruments which as a general rule can be utilized by Danmarks Genopretningsfond and the main terms for investments made by Danmarks Genopretningsfond.
You can read more about the overall investment terms here (in Danish).
When selecting undertakings whom are eligable for a capital contribution from Danmarks Genopretningsfond an individual assessment of each applicant will be made. The assessment will place emphasis on the following indicative criteria:
Affected by COVID-19
That the undertaking is affected by an extraordinary financial shock caused by the COVID-19 crisis and consequently the undertaking cannot find the necessary sustainable finance elsewhere.
That the undertaking is significant in size and of importance to the Danish economy which as a general rule presuppose that the undertaking has a turnover of more than DKK 500 million during the financial year of 2019.
That the undertaking was financially solid pre 31 December 2019, and is considered to have a financial future potential with normalization of the economy.
When the undertaking is contributing to society, for instance in the form of significant presence in Denmark, playing a central role, for example a geographical/socio-economic role for parts of the population or critical infrastructure, large export share, undertaking is difficult to replace, for instance due to complex value chains or high access barriers or the undertaking is highly productive and is constituted strategically important contributor to Danish industry. Danmarks Genopretningsfond focuses on undertakings whom are socio-economically significant and whom are challenged by the capital structure. The selection criteria therefore also reflects the fact that companies in specific sectors are more relevant in relation to receipt of capital contributions from Danmarks Genopretningsfond than others. An undertaking is considered less relevant if it belongs to a sector or business which is not strongly affected by the COVID-19 crisis or is one among many companies in one sector where the individual undertaking is characterized as not being of social importance.
Danmarks Genopretningsfond focuses on companies whom are socio-economically significant and whom are challenged by the capital structure. The selection criteria therefore also reflects the fact that companies in specific sectors are more relevant in relation to receipt of capital contributions from “Danmarks Genopretningsfond” than others. A undertaking is considered less relevant if it belongs to a sector or business which is not strongly affected by the COVID-19 crisis or is one among many companies in one sector where the individual undertaking is characterized as not being societal.
You can read more about the selection criteria in the investment policy for Danmarks Genopretningsfond (in Danish).