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 enabling people to employ their skills and improve their quality of life. Every month we provide an overview of our new investments, which can be seen below.
KCB Bank Kenya
Leading impact-focused bank in Kenya
At the 2024 Africa CEO Forum in Kigali, FMO announced its participation in the European Financing Partners (EFP) transaction for KCB Bank Kenya.This was a syndication of EFP, led by Proparco, with FMO contributing USD 12 mln. KCB Group is a leading banking group in East Africa and offers a range of finance products such as savings accounts, loans, insurance, investments with an extensive network of 192 branches spanning across the country. They will use the funds for onward lending to projects that prioritize environmental sustainability and high social impact, particularly in the health and education sectors. 70% of the credit line will be dedicated to Reducing Inequalities (through women entrepreneurs, SMEs, health and education projects), and 30% towards Green projects, thereby aligning with the 2X Challenge.
Fundación Génesis Empresarial
Microfinance institution in Guatemala
We arranged a USD 85 mln A/B syndication loan in local currency, alongside several investors including he Belgian Investment Company for Developing Countries (BIO), Norfund, eco.business Fund, Invest in Visions, and Enabling Qapital. Génesis, with a client base of over 392,998 individuals, of whom 72% are women and 80% reside in rural areas, stands as a beacon of hope in Guatemala's microfinance landscape. Through its client-centric approach, Génesis provides not only financial access but also tailored guidance and training, empowering entrepreneurs to improve their businesses and enhance the quality of life for their families. The transaction will not only support Génesis’ ambitions to grow microentrepreneurs’ businesses and their progress, but also to promote life quality improvements as it is a core value for Genesis.
Satin Creditcare Network
Leading microfinance institution in India
FMO signed a USD 40 mln local currency transaction with Satin Creditcare Network Ltd., an established top 3 MFI in India, which is mostly active in India’s underbanked northern regions. Satin primarily provides unsecured microcredit to economically active women in rural and semi-urban areas, who otherwise have limited access to mainstream financial service providers. They also offer loans to individual businesses and MSMEs; product financing for the purchase of solar lamps, as well as loans for the development of water connections and sanitation facilities which make up the remainder of the portfolio. As the proceeds will be fully utilized towards Water, Sanitation and Hygiene (“WASH”), Solar panel and induction cooker loans for microentrepreneurs, the transaction contributes both 100% to Green & RI targets.
Aye Finance
Digitally agile non-banking financial company in India
FMO closed a local currency equivalent of a USD 30 million listed NCD transaction with Aye Finance in India. Aye is a digitally agile NBFC focusing on micro and small enterprises in India's northern states. Using tech-based credit underwriting, Aye provides loans to customers who otherwise would be locked out of the financial system. This partnership began in 2019 when FMO initially provided funding to Aye, and with this latest transaction, FMO aims to further support Aye's business expansion. The proceeds from this facility are fully dedicated to MSME customers, aligning with FMO's goal of reducing inequalities (100% RI).
XacBank
Socially-focused commercial bank in Mongolia
FMO announced the signing of a USD 50 million Senior Unsecured Loan with our long-standing (since 2007) client XacBank JSC. The facility will be dedicated for eligible green projects (40%) and sub loans to underserved SMEs (60%, Women / Youth / Agri SMEs). Development of MSMEs is critical for the diversification of Mongolia’s economy which relies heavily on the mining industry. The green component is meant to encourage and assist the green aspirations of the bank. XacBank is accredited by the Green Climate Fund and through its unique “Eco Banking Department” (2009) has experience in working with international funders for developing and implementing various energy-related projects and programs.
SPE PEF III
Sector-agnostic private equity fund with North Africa focus
FMO provided a USD 20 mln equity investment in SPE PEF III ("the Fund”), a a USD 350m sector-agnostic, North Africa focused, private equity fund managed by SPE Capital (“Fund Manager” or “SPE”). It was formed in 2016 as a spin-off from a MENA-focused investment bank. The Fund will pursue control-oriented growth stage equity and equity-related investments in mid-cap companies, primarily in Egypt, Morocco and Tunisia, with the objective of achieving long-term capital growth. FMO’s commitment will pport the Fund in achieving its first close in a challenging fundraising environment and attract new commercial investors in subsequent funding rounds, thereby contributing to the resilience of financial markets and the development of private equity as a viable funding source in Africa.
Nur Bukhara Solar PV LLC FE
Solar PV plant and battery storage project in Uzbekistan
FMO provided USD 53.1 mln in financing for a the development, construction, and commissioning of a 250MW solar PV plant + 63MW / 126MWh battery energy storage system project in Uzbekistan, alongside the Asian Development Bank and IFC. The project is aimed at aimed at expanding clean and reliable electricity access to approximately 75,000 households and marks Central Asia's first renewable energy initiative with an integrated battery storage component. The financing is 100% Green and will add to the renewable energy mix of Uzbekistan, a country with excellent (wind and solar) resource* that targets to achieve 30% of renewable energy by 2030.
Armada Foods
Agri-processing company in Turkey
FMO signed a USD 15 mln term loan agreement with Armada Foods, a leading Turkish agri-processing company. Armada Foods controls a supply chain for various pulses products – primarily, lentils, bulgur, chickpeas, beans, and rice – including origination, storage, processing, packaging, and distribution of the final food products to the domestic and international markets. They are also a designated supplier and longstanding partner of international aid organizations, such as WFP and Red Cross. In 2022, FMO provided to Armada Foods a long-term $25mln loan to finance their capacity expansion via constructing a new state-of-the-art production complex in the Mersin Province of Türkiye, which is an important port city on the Mediterranean coast as well as a logistical hub for the global pulses market. The new loan aims to support Armada Foods in their additional funding needs related to the new production units within this production complex, which will be focusing in high-value added food products, such as super cereals and pulse flour.
