As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. In line with our updated 2030 Strategy: Pioneer, Develop, Scale, 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.
Agri Commidities & Finance FZ-LLC (AC&F)
Agricultural commodity trader and supply chain manager across Africa
FMO signed a new syndicated working capital facility of USD 100 mln with AC&F, the main subsidiary of the ETG Group, a large and diversified agricultural commodity trader and supply chain manager with most of its footprint in Africa. Since its establishment in 1967 in Kenya, ETG has emerged as the largest independent agricultural commodity supply chain manager in Africa. The Group owns and manages a vertically integrated agricultural supply chain with operations spanning procurement, processing, warehousing, distribution and merchandising across mainly Africa and India. This transaction shows FMO’s continued support to ETG, which has a strong presence in several least-developed countries and supports smallholder farmers, thereby qualifying the transaction as 100% Reduced Inequalities.
Sun King Financing Limited
Pay-As-You-Go provider in Kenya
FMO has signed a USD 20 mln facility agreement (provided 100% in local currency) to Sun King, funded by the Access to Energy Fund and Building Prospects fund. They sell solar home systems (and associated products) to households without access to (reliable) electricity, providing them with a significant improvement of quality of life. The transaction was part of a syndicated facility involving both commercial banks and DFIs.
SK Finance Ltd.
Non-banking financial corporation in India
FMO invested INR 4.1bn (~USD 50m) in a senior secured non-convertible debenture for SK Finance Ltd (“SK”). SK is a long-standing client in India, which started as a MASSIF client in 2014 with a balance sheet of ~USD 50m and has now successfully grown to a balance sheet of ~USD 1bn. This marks our second repeat deal from FMO’s own balance sheet.. The institution is active in asset backed financing for MSMEs in 10 states in North-western India, where they target underbanked MSMEs in rural and semi-urban areas. The transaction qualifies as 100% RI due to the MSME target market and 25% Green as the funds will be utilized to finance CNG vehicles and the conversion of Diesel/Petrol vehicles to CNG.
Terabank JSC
MSME-focused bank in Georgia
FMO disbursed a GEL 45 mln (~USD 15m) senior loan facility to Terabank, our longstanding partner in Georgia. The loan will be dedicated to MSME and for 30% to youth, women and agri. FMO funded this transaction by issuing a GEL-Bond in the domestic market. With this structure, Terabank has a true long-term local currency loan while FMO is contributing to the development of the Capital market in Georgia. Terabank is the 7th largest bank in Georgia with 2.5% market share and an FMO customer since 2017. The bank was established in 2007 and underwent a repositioning and rebranding in 2015-2016 whereby the strategy changed to finance SMEs. In the SME segment its market share is around 5.5%. The proposed transaction is in line with FMO's country-specific strategy of increasing our impact in Georgia through the existing client base which is formed of a selected number of banks and larger MFIs
Kazyon Limited
Hard-discounter grocery retail store in Egypt expanding to Morocco
FMO has signed an USD 25m equity participation in Egyptian hard-discount supermarket chain Kazyon. The company is the largest discount grocery retailer in Egypt with >3.5k employees, 4 distribution centres, and 648 stores of Feb-’23. With 75% of sales and 80% of stock keeping units (“SKUs”) in food products. By increasing its scale and expanding to Morocco, it provides further (and cheaper) access to essential goods at scale and contributes to support the formalization and maturing of North Africa’s agribusiness value chain. FMO is partnering in this investment with leading Fund Manager DPI and other (impact) investors like BII, IFC, South Suez, and Sango Capital.
