Direct and Indirect Projects

NORSAD investments are primarily divided into two, direct and indirect projects. Direct projects are where NORSAD has invested directly into an SME on its own account. In this case 100% of the project risk remains with NORSAD. Indirect investments are where NORSAD provides a line of credit or guarantee to a local financial institution for on lending to SMEs. In this case  the project risk arising from the funds disbursed to an SME remains with the financial intermediary. Since inception in 1991 NORSAD has made a total of 68 direct and indirect investments. As at 28 February 2009 the split between direct and indirect investments in the portfolio was 52% and 48% respectively.