As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track-record of empowering people to employ their skills and improve their quality of life. Each month we give an overview of the transactions we have signed.
Banco de America Central in Guatemala (BAC GT) is the 4th largest bank in the country and the Guatemalan bank of the regional BAC Credomatic Group. Our USD 90 million senior unsecured term facility will fund 100% eligible green projects in Guatemala and is part of a syndicate facility together with DEG for a total loan amount of up to USD 180mln. The BAC Credomatic Group’s strategy is aimed at maximizing its economic value by providing efficient, simple, and digital solutions with an environmental and social impact, including a net positive loan portfolio by 2040. FMO aims to continue supporting BAC GT and other banks of the BAC Credomatic Group in their ambitious net positive strategy to reduce greenhouse gas emissions in Guatemala and the region through green finance solutions.
Banco de Antigua is a microfinance bank in Guatemala, specializing in consumer finance and microfinance loans for low-income segments, as well as micro and small business loans in semi-urban/ rural areas. The partnership between FMO and the bank started in 2022, when FMO became the first international lender to provide a loan, enabling the bank to secure additional funding from abroad. This new transaction is a USD 15mln local currency-equivalent senior unsecured loan, funded through our government fund MASSIF. The proceeds of the loan will be fully allocated to micro-enterprises located in Guatemala's rural regions and supports the bank to expand their “Smart Branches” where clients can access a full set of services (and problem-solving solutions) both in person and online, a real advantage in rural areas with limited internet access. In addition, Banco de Antigua will receive technical assistance to enhance the bank’s data governance policies, automating credit processes, and implementing geolocation technologies.
Accial Capital Fund 1 (ACF1) is a debt fund focused on providing growth capital to technology enabled lenders active in Latin America and Southeast Asia, managed by Accial Capital Management. It specifically targets women entrepreneurs and, due to the innovative profile of the loan originators, a significant percentage of their borrowers are young entrepreneurs who otherwise struggle with accessing finance in the traditional financial system. FMO provided a USD 20mln senior unsecured loan to ACF1, which will be directed to supporting women and youth-owned/led MSMEs as well as Green loans, reaching clients that FMO cannot target directly because they are too small or require specialized knowledge. The Fund measures its performance against the SDGs and it is 2X Challenge aligned.
FMO invested USD 25mln in the SANAD Debt Sub-Fund for MSME to support small businesses in the Middle East and North Africa (MENA). Sanad means support in Arabic. The Fund seeks to promote stability in a challenging region by expanding financial inclusion for micro-, small- and medium-sized enterprises (MSMEs) that often have difficulties finding access to capital for starting or growing a business. SANAD loans to local financial institutions are on-lent to support MSMEs in multiple sectors (agribusiness, housing, and youth and gender initiatives). The Fund will expand its product offering to include direct lending to agribusinesses. Continuing the support for SANAD in this second investment since 2016 is an important step for FMO to further support entrepreneurs and SMEs in this part of the world, affected by unemployment and inequality.
Alongside Exagon Impact Capital (Exagon) and Entoria Energy Latin America (EELA or Entoria), FMO made a USD 15 mln equity investment in Solar Assets Latin America Pte (SALA). Exagon is a Fund Manager focused on energy transition investments in Latin-America. SALA is a platform company that has been established to hold solar assets developed by EELA - an established solar energy developer. EELA’s assets are predominantly located in Colombia, with the remainder of the exposure comprising of Panama and Mexico. The off takers of the platform are creditworthy Commercial & Industrial clients across the region under long-term power purchase agreements. The funding objective of this investment is to satisfy a near-term capital need to start construction (and continue development) of advanced solar projects in EELA’s pipeline which support its customers to achieve their energy transition.
