Monthly overview – November
The Hague, 6 December 2021 – 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 close to 50-year proven track-record of empowering people to employ their skills and improve their quality of life.
These months we focus on business continuity in the wake of the COVID-19 pandemic. It is precisely now, during these times of crisis, that it is important to continue to invest in developing economies that are expected to be hit hard by the pandemic. While local governments are working hard to minimize the impact on their people and economies, we are needed now more than ever. Hence, we continue to empower entrepreneurs in developing economies to build a better world and boost resilience to withstand the pandemic.
Fin’ Elle, la Finance pour Elle
Microfinance Institution in Cote d’Ivoire
FMO signed the LCY equivalent of a EUR 5 mln senior term loan with new client Fin’Elle, an NBFI active in Cote d’Ivoire which was acquired in 2018 by the Cofina group, FMO’s existing partner and a pan-African meso-finance funder that is active in 8 countries in francophone Africa. The financing was structured around a committed and uncommitted tranche in order to support the client’s strong growth path. In addition, FMO also brought EDFI as a partner to Fin’Elle to provide subordinated debt for a total envelope of EUR 1.5mln. FMO and DFI are now the first DFI’s to fund Fin’Elle. FMO funds are provided by MASSIF and are fully targeted towards financing women micro-entrepreneurs and women-owned SMEs, supporting hereby SDG’s 5, 8 and 10. MASSIF also provides technical assistance with support from technical partner LadyAgri and which will allow Fin’Elle to onboard women that are active in the cassava value chains and typically excluded from the traditional financing circuit.
The Small Enterprise Foundation NPC
Microfinance Institution in South Africa
FMO signed a ZAR 50 mln Term Loan (4 yrs) with existing client The Small Enterprise Foundation NPC.= (‘SEF’), a not- for-profit institution in South Africa. The foundation has been established in 1992, playing a fundamental role serving underbanked female entrepreneurs in rural arears and encouraging them to start their own business and nurturing their growth. SEF provides small loans (~USD 300) with a 6 month tenor, with this loan we expect that ~11,000 MSME’s are reached, aligning to FMO’s impacting goals. This facility provides long term funding and helps SEF with its strategy to grow its loan portfolio and reach out to the poorest in South Africa, aligning with FMO’s impacting goals.
Waycool
AgriTech company in India
WayCool Foods & Products is an AgriTech company that aims to build India’s largest, tech-enabled, food logistics & distribution platform. By transforming the fragmented Indian agri-space, farmers’ incomes can improve, food wastage is reduced, and consumers have access to higher quality produce. FMO invested USD 3.6mln to support WayCool’s operations, expansion, and capex and working capital needs.
Climate Investor II
Blended finance fund
Climate Investor 2 (CI2) achieved its first close with total commitments of USD 675 million, with USD 312.5 million unlocked as early as November 10. FMO committed USD 40m to Tier 2 of CI2's Construction Equity Fund. CI2 has a USD 1 billion target fund size and will provide expertise, technology and financing to infrastructure projects in emerging markets by mobilizing private sector financing at scale, supported by catalytic public sector donor funding. It will focus on water, sanitation and oceans infrastructure.
Agriculture
&Green Fund first investment
FMO made the first investment of the Mobilising Finance for Forest Fund (MFF) in the Andgreen Fund (&Green). The investment consists of two components: a USD 31.5mln investment facility and USD 1.75mln development capital facility. Mobilising Finance for Forests is as a blended finance investment program funded by the UK government and managed by FMO to combat deforestation and other environmentally unsustainable land use practices contributing to global climate change. &Green invests in commercial projects in agricultural production value chains to protect and restore tropical forests and peatlands, and make agriculture more sustainable and inclusive. The main focus countries are Brazil, Colombia, Indonesia, Ecuador, Peru, Gabon, Liberia and the Congo Basin.
