New investments HY2012: total EUR 576 million
Profit in first half of 2012: EUR 42 million
FMO, one of the largest bilateral private sector development banks worldwide, made new investments of EUR 576 million in the first half of 2012, an increase of 68% compared to HY2011.
In HY2012, FMO provided financing totaling EUR 576 million to businesses in developing countries helping the private sector create jobs, and strengthen sectors essential for sustainable grwoth in developing countries, such as the energy, financial and agricultural sectors.
Mainly due to value adjustments, the net profit decreased to EUR 42 million (HY2011: 69 million). On the other hand, interest income increased further.
Sustainability is intrinsic to FMO's business. Therefore we select projects that positively affect economic, social, environmental development and good governance. FMO recently received a high sustainability rating by Sustainalytics (a highly respected rating agency).
Nanno Kleiterp, FMO's CEO, said: "We are satisfied with the results of the first half of 2012, which have proved once again that the investment opportunities in developing countries are good. Despite the high uncertainty and volatility in the financial markets, we see a continuous growth in emerging markets and developing countries.
For the second half of 2012, our outlook is neutral. The consequences of the Eurozone debt crisis, the stagnating recovery of the US economy and lower growth prospects in China will reach the emerging and developing markets. Although the extent of these factors is difficult to predict, we keep monitoring these developments closely.
As a result of strict capital requirements we see that larger Western financial institutions are focusing on their core markets and are less inclined to invest in developing countries. This will increase demand for finance provided by FMO and emphasizes the importance of FMO's presence in emerging markets. Our current investment portfolio, healthy pipeline and solid capital position enable us to continue in our mission and create development impact in the future."
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 lead to economic and social development, empowering people to use 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 6.2 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
Press contact:
Paul Hartogsveld
Communications Officer (PR)
T:+31 70 3149924
M:+31 6 39447288
