Record new commitments while focus on development impact becomes stronger
The Hague, March 27, 2014
• EUR 1.5 billion in new investments
• EUR 6.6 billion total committed portfolio
• EUR 133 million net profit
• Growth of sustainable business
• Successful launch of Investment Management and Sustainability Bond
FMO (the Dutch Development Finance Company) published its 2013 annual results today.
The total investment portfolio increased to EUR 6.6 billion (2012: EUR 6.3 billion). The quality of the portfolio remains strong. A net profit of EUR 133 million (2012: EUR 145 million) will enable further investments and increase the development impact in developing countries.
Successful new initiatives
FMO achieved record new commitments of more than EUR 1.5 billion (2012: EUR 1.4 billion). Other highlights of 2013 included the launch of our first investment fund and the issue of our first public sustainability bond in the market, where it encountered strong investor demand. FMO also maintained a strong level of profitability; although the quality of income was lower than 2012. Lower private equity exit results were compensated for by a release of the group specific provision as a result of a refinement in methodology and lower pension expenses. The quality of our loan and private equity portfolios remained fairly stable throughout the year.
Implementing the new strategy
Nanno Kleiterp: “Our new strategy of becoming the leading impact investor, will increasingly become part of our day-to-day activities at FMO. But it is not about FMO itself: it is about finding ways to help clients who are agents of change. It is about supporting clients whose business strategies contribute to a sustainable world in 2050. Our clients create impact in three ways: inclusive development, green development and economic growth. Inclusive and green are terms used to describe enhanced access to finance, infrastructure and other resources and environmental sustainability”.
Going forward, we aim to maintain our profitability while also further increasing the money we catalyze from others. For every euro FMO invests we would like to attract the same amount in third-party funds by 2020, with at least half of these third-party funds from commercial investors.
We are on an inspiring journey to show that impact and profit can coexist; that it is possible to set concrete impact targets, achieve them and report on them transparently. As in every journey, the destination is not reached in a day. Yet I know that the journey is worthwhile, and that we will manage to get there”.
Outlook
Kleiterp: “We expect continued uncertainty, as well as volatile exchange rates in many of our markets. Emerging markets should continue to grow, but at slower rates than in recent years. We monitor all relevant developments closely. Our robust and well-diversified portfolio supported by an equally strong capital base, can withstand a potential market downturn”.
About FMO
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.6 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
Press contact:
Paul Hartogsveld
Senior Communications Officer (PR)
T: +31 70 314 9928 M: +31 6 11589127
Disclaimer This press release should be read in conjunction with the Annual Report and Annual Accounts 2013, which will be published on 27 March 2014 on http://annualreport.fmo.nl. All figures in this document are not audited and not reviewed.
