• EUR 341million in new investments (HY 2016)
• EUR 8.9 billion total committed portfolio (HY 2016)
• EUR 57 million net profit (HY 2016)
• 159,000 direct and indirect jobs supported and GHG avoidance of 49,000 tCO2eq
• Launch of FMO Privium Impact Fund
FMO (the Dutch Development Finance Company) published its 2016semi-annual results today.The total committed portfolio slightly decreased to EUR 8.9 billion (Year end 2015: EUR 9.3 billion). New commitments amounted to EUR 341 million (HY 2015: EUR 646 million), of which EUR 129 million was mobilized through third parties. A net profit of EUR 57 million (HY 2015: EUR 98 million) will enable further green and inclusive investments and increase jobs supported and created in developing countries
In May, FMO committed to become a strategic partner and invest USD 30 million in the Women Entrepreneurs Debt Fund. Gender finance is becoming an increasingly important priority of impact investors and policymakers globally, and is showing to be a high potential market opportunity.
In June, FMO launched the FMO Privium Impact Fund. This fund offers clients of ABN AMRO, starting with its Private Bank in the Netherlands, ABN AMRO MeesPierson, the exclusive opportunity to co-invest in loans to private sector companies in emerging markets.
Nanno Kleiterp, FMO’s CEO, commented: ”FMO’s results in the first half year of 2016 suffered from difficult market circumstances. The lower volumes are the results of external developments, timing of deals, especially in the Energy sector and lower targets in order to increase focus on the existing portfolio. Based on a strong pipeline, we still expect to meet our targets in 2016.
Our net interest income decreased with €4 million mainly due to one-off results in the 2015 comparing period. Results from financial transactions amounts to a loss of €3 million in the first half of 2016 compared to a gain of €16 million in the same period last year. The decline was mainly caused by the negative fair value results on US dollar cross currency interest rate swaps. Total value adjustments increased with € 24 million to € 38 million. Lower commodity prices and geo-political circumstances in the eastern European region are the main reasons for this increase.
In the first half of 2016 we supported 159,000 direct and indirect jobs and GHG avoidance of 49,000 tCO2eq (first half 2015: 329,000 jobs and 554,000 tCO2eq).
FMO’s common equity Tier 1 (CET1) ratio improved from 22.9% (year end 2015) to 23.8%.
In March, we were shocked by the news that Honduran Human Rights activist, Berta Cáceres was murdered. Mrs. Cáceres was a vocal activist against the Agua Zarca project, co-financed by FMO. Based on the developments after the murder of Mrs. Cáceres, FMO decided to seek an exit from the project. An independent fact finding mission was undertaken at our request to provide us with comments and recommendations for a responsible exit strategy and any lessons learned.”
Looking forward to the remainder of 2016, our outlook will remain uncertain and cautious. Low commodity prices and lower global economic growth might have a continuous effect on multiple regions, which could impact our markets.
This press release should be read in conjunction with the interim Report 2016, which will be published on 29 August 2016 on www.fmo.nl/reports. All figures in this document are not audited and not reviewed.
