The Hague, 1 November 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.
Financial Institutions
Lendable MSME Fintech Credit Fund
Debt financing vehicle (SICAV-RAIF) in Luxembourg
FMO, through MASSIF, co-anchored the new closed-ended high-impact debt fund initiated by existing client Lendable Inc. through a USD 5 mln investment in the mezzanine tranche. The fund’s first close reached USD 46.75 mln via commitments from leading impact and DFI investors from both Europe and the US. The fund will provide senior secured debt financing to young Fintech companies that provide credit to underserved MSMEs in emerging and frontier markets in Africa and South-East Asia. The fund is aiming to reach a USD 100 mln total fund size and a second close is already in the making. MASSIF’s investment will contribute to SDGs 8 and 10.
Amret PLC
Microfinance Institution in Cambodia
FMO signed a USD 50 million transaction with long-standing client Amret, the 2nd largest MFI in Cambodia serving more than 500,000 clients. Amret mainly caters to clients in the micro and SME space, active in agriculture and trade sector with 61% of loans to female entrepreneurs. Amret is SMART certified and a frontrunner in providing sustainable financing to its customers. As such its social mission closely resonates with FMO’s own ambition of supporting SDG 5, 8 and 10. The proceeds of the loan will be used to fund the growth of micro and SME portfolio of Amret. Credit demand in Cambodia is expected to pick up as the country is recovering from the Covid pandemic and economic growth forecasts are promising. The 5-year tenor of the facility will bring balance sheet stability and boost resilience at a time of heightened uncertainty caused by pandemic.
Private Equity
Green Growth Equity Fund – Eversource Capital
Green infrastructure in India
FMO committed USD 30m to Eversource Capital’s Green Growth Equity Fund (GGEF). In addition, FMO, in its capacity of Accredited Entity for the Green Climate Fund, committed an up to USD 132.5m first loss facility as well as a USD 4.5m Technical Assistance facility to GGEF. These commitments will enable GGEF to continue to invest in much needed green infrastructure in India, across renewable energy, energy efficiency, energy storage, e-mobility and resource conservation (waste and water). With these investments FMO supports bringing decarbonization of one of the largest global economies to scale.
Energy/Private Equity
Africa Ren Energy SAS
Renewable platform in West-Africa
Africa REN is a platform company that will be established with the aim to contribute to the development, construction and operations of (greenfield) renewable energy projects in low-income sub-Saharan countries. All projects owned by the Africa REN platform will provide clean and reliable electricity to countries which have low electrification rates, at lower prices than current thermal power stations. FMO’s equity investment of ca. EUR 11mln will be used towards their proportional acquisition of 60% of the equity rights in Senergy 2, 100% of Kodeni Solar and ca. 90% Walo Storage. This financing will further facilitate the development, construction and operations of these projects. This is a co-investment with FMO investee Metier Sustainable Capital International Fund II LP, who will become a majority shareholder alongside FMO.
